Consider the cost function C(Q) = 1000 + 1.5Q2forRussCoto produce its new Phone. Using that cost function for the Phone, determine the profit-maximizing output, price, and profit (or loss) for theRussCoPhone, and discuss its long-run implications, under three alternative scenarios:

a.RussCoPhone is a perfect substitute with a similar product offered by Apple, Samsung and several other Phones that have similar cost functions and that currently sell for $900 each.

b.RussCoPhone has no substitutes and so is a monopolist, and the demand for theRussCoPhone is expected to forever be Q = 33 - (1/6)P- note you use the earlier listed cost function (TC(Q) = 1000 + 1.5Q2).

c.RussCoPhone currently has no substitutes, and currently the demand for theRussCoPhone is Q = 88 - (1/5)P, butRussCoanticipates other firms can develop close substitutes in the future. - note you use the earlier listed cost function (TC(Q) = 1000 + 0.5Q2).