Problem: A firm has the following short-run demand and cost schedule for a particular product: Q = 100 + 2P and Total Cost (TC) = 200 + 2Q.
Q1. Determine the firm's profit-maximizing Quantity Q, Price P, and economic profits or losses.
Q2. If this firm operates in a monopolistically competitive market, what will happen in the long-run to Q, P and profits?
Q3. What are two strategies that you would implement to increase your profits?