Question: 1. The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $5,000
1. The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $5,000 of fixed costs per month. There are no marginal costs.
| Quantity | Price ($) | Total Revenue ($) | Marginal Revenue ($) |
| 400 | 30 | 12,000 | |
| 600 | 25 | 15,000 | 3,000 |
| 800 | 20 | 16,000 | 1,000 |
| 1,000 | 15 | 15,000 | -1,000 |
| 1,200 | 10 | 12,000 | -3,000 |
| 1,400 | 5 | 7,000 | -5,000 |
| 1,600 | 0 | 0 | -7,000 |
Instructions: Round your answers to the nearest dollar and include a negative sign if appropriate. a. If they evenly split the quantity a monopolist would produce, what is the monthly profit for each duopolist? Explain.
b. If duopolist A decides to increase production by 200 units, what is the monthly profit for duopolist A and what is the monthly profit duopolist B? Show your explanation and calculation steps. 2.Spotify sells the music of Drake, who is very popular among young listeners. Suppose the music download industry is a monopolistic competitive market. The current period's supply and demand for Drake song downloads (000s) from Spotify is given in the figure below.
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