The manager of monopolistically competitive firm and your demand and cost functions are the following:
Q=20 -2P and C(Q) = 104 -14Q + Q(2nd Power)
a. Find the inverse demand function for your firm's product?
b. Determine the profit-maximizing price and level of production?
c. Calculate your firm's maximum profits?
d. What long-run adjustments should you expect? Explain you findings.
Profit-maximizing price and level of production are shown.