PC Connection and CDW are two online retailers that compete in an Internet market for digital cameras. While the products they sell are similar, the firms attempt to differentiate themselves through their service policies. Over the last couple of months, PC Connection has matched CDW's price cuts, but has not matched its price increases. Suppose that when PC Connection matches CDW's price changes, the inverse demand curve for CDW's cameras is given by P= 1,200 - 40. When it does not match price changes, CDW's inverse demand curve is P: 920 -O.50. Based on this information, determine CDW's inverse demand function over the last couple of months. P= - QifQS8O - QiszBO Over what range will changes in marginal cost have no effect on CDW's profit-maximizing level of output? $ to$ You are the manager of a firm that competes against four other rms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is O: 1200 -4P and all five rms produce at a constant marginal cost of $60. For security reasons, the government has imposed restrictions that permit a maximum of five rms to compete in this market; thus entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20 percent ofa contract for 880 units at a contracted price of $80 per unit. If this legislation is passed, by how much should you expect your prots to change? Instruction: If you expect profits to fall, enter a negative (-) number. 33