Kelson Electronics, a manufacturer of DVRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q

1)What is the structure of the market, in which Kelson Electronics is operating? Explain.

2) What are total revenues if firm is producing at profit-maximizing level?

3) If the total cost function is =150+0.00252, what is the cost of producing profit maximizing level of output?

4)If the market price decreased to $160, what will be firm optimum quantity with this new price? Will the firm still be making economic profits?