Problem: Using the function C(Q) = 400+50Q+5Q^2 determine the profit-maximizing output and price and discuss its long-run implications under 3 scenarios.
1) The firm is a perfect substitute with a similar product offered by Firm B, Firm C that have similar cost functions and that currently sell for $200 each.
2) The firm firm has NO substitutes and so is a monopolist, and the demand for the Firm is expected to be forever Q=30-(1/5)P (note use earlier listed cost function)
3) The firm has no substitutes and currently the demand for the firms product is Q = 80-(1/5)P but the firm anticipates that other firms can develop close substitutes in the future.