Need help with answers and process for these questions below
1. You rm A is a monopoly in a particular market. Y0u can produce at constant marginal cost of $50 for every additional unit you produce. Y0u have avoidable xed costs of $6,000 per year. You face a market demand curve given by Q = 540 2P, where Q is the number of units sold per year, and P is the price per unit. a. What is the equation of y0ur marginal revenue curve? b. What is your rm's prot-maximizing price and quantity? What will be your annual prot contribution at this quantity? c. Suppose that you face a capacity constraint that allows you to sell at most 200 units per year. As long as you produce less than 200 units per year, your marginal cost of an additional unit continues to be $50. What is your prot- maidmizing quantity and price? (Hint: a picture may help here.) 2. A rm faces a demand curve given by the equation P = 80 2Q. Its marginal cost of production is $20 per unit. a. Find the protmaximizing price and quantity. b. Suppose that the rm contemplates issuing a $1 O-off coupon. Assume that consumers who would purchase at a price $50 or more never redeem coupons. Consumers who do not purchase at $50 or more always redeem coupons. By how much w0uld the rm's prots change if it issues this kind of coupon? 3. A rm faces two micro-markets (two different market segments or localized markets). The demand curve in the rst one is Q1 = 100 P1; the demand curve in the second one is Q2 = 170 2P2 (both prices are expressed in dollars per unit). The marginal cost of production in each micro-market is constant and equal to $10 per unit. Suppose that the rm can charge a distinct price in each micromarket. What is the protmaxinzing price in each micro-market? Is the rm better or worse compared to a situation where it has to set the same price in both markets? Explain