Consider the cost function

TC(Q) = 20 + 1.5Q²

for RussCo to produce its new Phone. Using that cost function for the Phone, determine the profit-maximizing output, price and profitfor the RussCo Phone, and discuss its long-run implications, under three alternative scenarios:

1. RussCo Phone is a perfect substitute with a similar product offered by Apple, Samsung and several other Phones that have similar cost functions and that currently sell for $60 each.

1. RussCo Phone has no substitutes and so is a monopolist, and the demand for the RussCo Phone is expected to forever be Q = 3 - (1/6)P

- note you use the cost function (TC(Q) = 20 + 1.5Q²).

1. RussCo Phone currently has no substitutes, and currently the demand for the RussCo Phone is Q = 8 - (1/5)P, but RussCo anticipates other firms can develop close substitutes in the future.

-note you use the cost function (TC(Q) = 20 + 1.5Q²)