A firm has the following short-run demand and cost schedule for a particular product:
Q = 200 - 5P
TC = 400 + 4Q
a) At what price should this firm sell its product?
b) Determine the total profit/loss this firm would make
c) If this is a monopolistically competitive firm, what do you think would start to happen in the long-run? Explain.
d) Assume in the long-run, the demand shifted to: Q = 100 - 5P, What should the firm do? Explain