Question: Consider a firm that has cost function C ( q ) which is an increasing function of total output produced q . Assume that the

Consider a firm that has cost function C(q) which is an increasing function of total output produced q. Assume that the firms marginal cost curve m(q) has positive slope. a) Suppose that output q is sold in a perfectly competitive market. Describe the condition for profit maximization on the part of the firm, and sketch this solution in a graph. b) Suppose that output q is sold in a monopolistic market. Describe the condition for profit maximization on the part of the firm and sketch this solution in a graph.

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