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Consider the market for electric are where (inverse) demand for electric cars is described by P = 122 Q. where Q denotes the number of electric cars demanded (in thousands) and P denotes the price per eiectric car. Manufacturing electric cars involves a xed cost of 2,000, while the marginal cost of production is 2. (3) Consider a monopolist producer of cars Green Motors. Find the quantity of electric cars produced, the price per electric car and the prot made by Green Motors. [6 marks] (b) Now suppose the car market is duopolistic, where Green Motors and its competitor Wengage in Coumot competition. Both rms face the same costs. Describe Coumot competition and nd the market outcome in the Coumot equilibrium. Are consumers better off than in (a)? [14 marks] (c) Suppose the cost of 2.000 reects Research and Development 0180) costs to develop an electric car that cannot be recovered. Would your answer to (b) change? [5 marks] (d) The government oers Green Motors and We subsidy of 500 each. Does this benet consumers? [5 marks]