Q. PCC and CDW are two online retailers which compete in an internet market for digital cameras. Their products are some Explain how differentiated and over the last couple of months, PCC has matched CDW's cost cut, but has not matched it cost changes. The inverse demand for CDW is P=1250-2Q when the PCC matches CDW's cost changes, and when it does not matched, the demand curse is estimated as P=800-0.50Q.
a) Illustrate what are the demand and MR of CDW over the last couple of months?
b) Over Illustrate range will changes in marginal cost have no effect on CDW's profit-maximizing level of output?