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Suppose that the (inverse) demand curve for Cranberries is given by P = 40 − 6Q...

Suppose that the (inverse) demand curve for Cranberries is given by P = 40 − 6Q and TC = $4Q + $3Q2

  1. What is equilibrium Price and Quantity and Profit if the market is competitive? 4 Points
  2. What is equilibrium Price and Quantity and Profit if there are two firms in the market (note Q = q1 + q2)? 5 Points
  3. What is equilibrium Price and Quantity and Profit if there are monopoly in the market (note Q = Q)? 5 Points
  4. If there were 3 firms, where do you estimate the output and the price would be—this does not require a mathematical calculation—it is based on the expectations created by the prior three answers (1-b, 1-c, and 1-d). 2 Points
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