Find the firms total revenue and total cost equations

Question

Progressive Insurance offers mail-order automobile insurance to preferred-risk drivers in New York State. The company is the low-cost provider of insurance in this market with fixed costs of $20 million per year, plus variable costs of $500 for each driver insured on an annual basis. Annual demand and marginal revenue relations for the company are:

P = $1,500 - $0.005Q

MR = $1,500 - $0.01Q

1. Find the firm's total revenue and total cost equations.
2. Calculate the profit-maximizing output level.
3. Calculate the revenue-maximizing output level.
4. Calculate the company's optimal profit and profit margin levels.
5. Graph the firm's demand curve and marginal revenue curve.