Task 1: Given the following Demand & Supply functions:
Qd = 25 – P
Qs = 10 + 2P
Question 1: What is the equilibrium values of P and Q?
Now suppose the demand function changes to:
Qd = 10,000 – 2P
If Total Cost function is:
TC = 5000 + 50Q
Question 2: Find the Profit – maximizing Quantity and Price.
Question 3: Find the firm’s profit.
Task 2: Given the following Demand and Cost functions for a monopolistically competitive firm:
Qd = 100,000 - 20P
TC = 1,000 + 10Q + .05Q to the power of 2
a. Find the profit maximizing Quantity and Price.
b. Find the Profit.