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Consider a two-period monopoly facing the negatively sloped inverse demand function pt = posh) in each period t = 0, 1. The firm maximizes the present discounted value of profits, PDV = 23:0(1 + r)'t7rt, where r > 0 is the market interest rate, and t is periodt profit. In each of the following, assume that costs each period are increasing in that period's output and a strictly convex, and that PDV is strictly concave. (a) If costs are C: = C(qt) for t = 0, 1, show that the firm will \"shortrun profit maximize\" in each period by choosing output to equate marginal cost and marginal revenue in each period. (b) Now suppose that the firm can \"learn by doing". Its first period costs are simply c0 = 00.10). Its second period costs, however, depend on first period output; cl = c1(q1,q0), where Bel/6%