Q1. What is the relationship between marginal cost and marginal revenue when single-price monopoly maximize profit? shows the graph also.
Q2. Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: p = 200 -QA -QB where QA and QB are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are TCA = 1,500+55QA +Q2A TCB = 1,200+20QB +2Q2B