A. As a monopoly, calculate the firm's output, price, and profits at the profit maximizing activity level.

Question:

A. As a monopoly, calculate the firm's output, price, and profits at the profit maximizing activity level.
B. What price and profit levels would prevail based on the assumption that new entry into the local market results in competitive market pricing?
Monopoly Equilibrium
TR=$250Q - $0.001Q2;
MR= ΔTR/ΔQ=$250 - $0.002Q
Marginal costs are stable at $150 per unit. Fixed costs are nil.