Exercise 4. (Easy) Suppose that the demand curve is Q = S[1ln - b (P- 13)], with =5, S=100, b = 0,1 and n = 10. Consider two rms with different marginal costs. (a) Derive the marginal revenue curve (MR(Q)). (b) Firm A has marginal cost c = 2. Find the production in equilibrium. (c) Suppose that Home opens to free trade. As a consequence, the new equilibrium occurs with S = 200, n = 20 and P: 4. Does production of rm A increases or decreases? (d) Repeat (b) y (c) for rm B with marginal cost C: 4. Compare the performance of rm A and rm B and explain the difference based on the theoretical models covered in class