COURSE: MICROECONOMICS 2 - MONOPOLY AND PRODUCT VARIETY Firm "Z" produces 2 varieties of product with higher quality called "A" and lower quality called "B". It has estimated inverse demand for both products as P = 300 - q and marginals cost MC_A = 100 and MC_B = 80. a) Estimate quantities produced of each variety and equilibrium price for each type of good. b) Estimate excess profit achieved for each product variety. d) Is it in firm's interest to diversify in product variety? Explain why