If there is an industry with market demand characterized by P=6300-3Q. If the market is currently served by a large collection of firms all with constant marginal costs of 4200:

a. what will the initial price in the market be.

b. Suppose one firm is able to innovate and drive their own costs down to MC=3600. What price and quantity would this firm want to set to maximize profits as a single-price monopolist if it were to have the market to itself.

c. Suppose one firm is able to innovate and drive their own costs down to MC=3600. What price and quantity would this firm actually set and what are the firms profits? Is this a large or small innovation.