Question #1 (this is a traditional perfect competition, monopoly, and duopoly question)

Suppose that the (inverse) demand curve for Ginseng is given by P = 120 6Qand TC =10 + $12Q + $3Q²

a.What are four conditions required for a competitive market?4 Points

b.What is equilibrium Price and Quantity and Profit if the market is competitive?4 Points

c.What is equilibrium Price and Quantity and Profit if there are two firms in the market (note Q = q₁ + q₂)?5 Points

d.What is equilibrium Price and Quantity and Profit if there are monopoly in the market (note Q = Q)?5 Points

e.If there were 3 firms, where do you estimate the output and the price would bethis does not require a mathematical calculationit is based on the expectations created by the prior three answers (1-b, 1-c, and 1-d).2 Points