A firm sells some output in a perfectly competitive market, where the price is $60 per unit, and some on a market in which it has a monopoly, with a demand function p2 = 100 − q2, where q2 is output in the monopoly market. Its total-cost function is C = (q1 + q2)2, where q1 is output in the competitive market. Find the profit-maximizing outputs in the two markets and discuss the nature of the equilibrium. Suppose now that the price in the competitive market falls to $10. Find the new profit-maximizing solution, and discuss how it compares with the original one.

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups.b) abandon the idea of vertical integration entirely.c) pursue taper integration.d) introduce a budget line of guitars to diversify the firm's offerings.