Question: a. Distinguish between profit optimisation under monopoly and under perfect competition. 4 Marks b. A competitive firm has the following demand function Q-2000 +20P

a. Distinguish between profit optimisation under monopoly and under perfect competition. 4

a. Distinguish between profit optimisation under monopoly and under perfect competition. 4 Marks b. A competitive firm has the following demand function Q-2000 +20P with the following cost function C(Q)=0.05Q2 +10,000. You are required to compute the following optimal values: i. Price ii. Quantity iii. Revenue iv. Total Cost 1 Marks 1 Marks 1 Marks 1 Marks C. d. Supposing the above firm was to be treated as a monopolist compute the optimal values stated in 4 Marks (b) above. In the context of the above information put up an argument in the defence of monopoly as a 3 Marks business.

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