8. The table shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each faces $6,000 of fixed costs per month. There are no marginal costs. What is the monthly profit for each duopolist if they evenly split the quantity a monopolist would produce?Suppose duopolist A decides to increase production by 200 units. How much will each duopolist produce and what price will they charge? How much profit will each duopolist earn? This table displays data related to quantity, pricing, total revenue, and marginal revenue. It is structured to provide insight into how these economic factors interact at varying levels of quantity.| **Quantity** | **Price ($)** | **Total Revenue ($)** | **Marginal Revenue ($)** ||--------------|---------------|-----------------------|-------------------------|| 0 | 40 | 0 | — || 200 | 35 | 7,000 | 35 || 400 | 30 | 12,000 | 25 || 600 | 25 | 15,000 | 15 || 800 | 20 | 16,000 | 5 || 1,000 | 15 | 15,000 | −5 || 1,200 | 10 | 12,000 | −15 || 1,400 | 5 | 7,000 | −25 || 1,600 | 0 | 0 | −35 |### Explanation:- **Quantity:** Represents the number of units produced or sold.- **Price ($):** The selling price per unit, decreasing as more units are produced or sold (indicating a typical demand curve).- **Total Revenue ($):** The total income generated from sales, peaking at 800 units with $16,000 before declining.- **Marginal Revenue ($):** The additional revenue gained from selling one more unit. This value decreases as the quantity increases, eventually becoming negative, which suggests that selling additional units beyond a certain point reduces total revenue.This table is useful for understanding the relationship between price, quantity, and revenue, and highlights the concept of diminishing returns in the context of economic production.

The term "marginal cost" describes the rise or fall in price associated with producing or providing services to an additional consumer. Solution:- Fixed cost faced by two producers in the market = $6000 Marginal cost= 0 Total cost= Fixed cost + marginal cost = 6000+0 =$6000 a) Duopolist will produce 800 units because at this point total revenue is maximum and marginal revenue is just above the marginal cost. Therefore; Quantity= 800 units Price= $20 The amount generated by each company will be the same if they divide the amount a monopolist will produce equally = 400 Price= $20 Profit = TR - TC = (400 ×20) - 6000 = 8000 - 6000 = 2000 each b) If the duopolist A increase the quantity by 200, then; Quantity produced by A will be= 600 units (400+200) Duopolist B is still producing 400 units. Total quantity will be= 800+200 =1000 units Price = $15 Total revenue generated by duopolist A :- TRA = 600 × 15 = $9000 Total revenue generated by duopolist B :- TRB = 400 ×15 = $6000 Profit A = TRA - TC = 9000 - 6000 = $3000 Profit B = TRB - TC . = 6000 - 6000 = $0