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confused with a,b,c Consider the following functions for a firm selling portable air conditioning units. TR = $8,000Q $402 TC = $80,0000 + $2,0000 +

confused with a,b,c

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Consider the following functions for a firm selling portable air conditioning units. TR = $8,000Q $402 TC = $80,0000 + $2,0000 + $402 Slope of the AC curve = 80,000Q'2 + 4 a) Calculate the equilibrium price and output for this rm as a monopolist (show workings) (4 marks) b) Using the same total revenue and total cost functions calculate the long run equilibrium price and output if this rm was a monopolistically competitive rm with a differentiated product (show workings) (4 marks) c) Compare and contrast productive and allocative efciency under each market structure (monopoly and monopolistic competition with differentiation) for the total revenue and total cost functions provided (show workings) (4 marks)

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