What level of output should be produced to maximize profits

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The Kinked and the monopolist demand curves are the same" Explain! (12 MARKS)
c) The cost function for a firm is given by TC = 6,000 + 12.5Q. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of P = 25 - 0.5Q.
(i) What level of output should be produced to maximize profits? (08 MARKS)
(ii) The firms have colluded to form one firm, what is the profit maximizing price? (08 MARKS)
(iii) Compare and explain the different profit maximizing levels

Reference no: EM13694019

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