Consider the following Industry Demand and Total Cost Curves for an industry characterized by monopoly:

Total Cost = 690,005 + 6.91Q 3 Demand: P = 1,080,005 - 160Q 2

a) What are the marginal cost, average cost, and marginal revenue curves faced by FINM Corp - the monopoly firm? Indicate the equations for these curves and use Excel to plot them and the demand curve over a range of Q from 10 to 85 (with scale shown in increments of 10) with the vertical axis from -$50,000 to $110,000 (with scale shown in $10,000 increments). Ensure you plot enough points to get smooth curves. Use an XY scatter graph without the smoothing option. b) At what level of quantity would FINM's average cost be minimized? c) What level of quantity does FINM Corp choose to produce? d) What is the price charged, total revenue, total cost, and economic profit for FINM Corp? e) What is the price elasticity of demand given the quantity FINM Corp chooses to produce? Interpret what the price elasticity of demand number you calculated implies about total revenue. What strategy implications might this mean for FINM Corp. f) If this industry begins to become more competitive, what will happen to the demand curve faced by FINM Corp? No equations are necessary, but give a sufficient word description as to what will happen. g) What actions might a corporation's management take to maintain a competitive advantage? Please be clear and concise. i) Consider a monopoly with a contestable market. ii) Consider an oligopoly situation. iii) Consider monopolistic competition and think of both demand and production aspects in your suggestions.

h) Suppose the good produced was actually something desirable for society to have and the government wanted to put a price ceiling on the good (there would be no tax in this case). What price should the government set so as to ensure there is no shortage and no surplus of the good? What will be the quantity consumed in this case? What will be FINM's total revenue, total cost, and economic profit in