Consider a market with aggregate demand p=8-q, where q is the quantity and p the price.

1. Compute the monopoly equilibrium, assuming total costs equal to TC=2_q. Compute the monopolits profit in equilibrium.

2. Assume that the same market is populated by two firms, A and B, competing in quantities, with total costs given by TC_A=2q_A e TC_B = 2q_B. Compute the duopolists profits in equilibrium.

3. Firms A and B now merge. Compute the new equilibrium and profits.

Consider a market with aggregate demand p=8q, where q is the quantity and p the price. 1) Compute the monopoly equilibrium, assuming total costs equal to TC=2q. Compute the monopolit's profit in equilibrium. 2) Assume that the same market is populated by two firms, A and B, competing in quantities, with total costs given by TCA=2qA e TCB=2qB. Compute the duopolists' profits in equilibrium. (3) Firms A and B now merge. Compute the new equilibrium and profits. Consider a market with aggregate demand p=8q, where q is the quantity and p the price. 1) Compute the monopoly equilibrium, assuming total costs equal to TC=2q. Compute the monopolit's profit in equilibrium. 2) Assume that the same market is populated by two firms, A and B, competing in quantities, with total costs given by TCA=2qA e TCB=2qB. Compute the duopolists' profits in equilibrium. (3) Firms A and B now merge. Compute the new equilibrium and profits