Consider an industry with market demand characterized by: P = 6300 3Q. Suppose the market is currently served by a large collection of rms all with constant marginal costs: M C = 4200. (a) What will be the initial price in this market? t at one rm has innovated to reduce its costs, what will be the output and prots of this innovating rm when it chooses to practice rst degree price discrimination after having driven its costs down to MC 2 3600