1) 2) 3) 4) A rm sells its product in a perfectly competitive market where other rms charge a price of $80 per unit. The nn's total costs are C(Q) = 40+ 8Q + 2Q2. a) How much output should the rm produce in the short run? b) What price should the rm charge in the short run? c) What for the rm's short-run prots? (1) What adjustments should be anticipated in the long run? You are the manager of a monopolistically competitive rm, and your demand and cost functions are given by Q = 20 2P and C(Q)=10414Q + Q2. a) Find the inverse demand function for your rm's product. b) Determine the prot-maximizing price and level of production. c) Calculate your rm's maximum prots. (1) What long-run adjustments should you expect? Explain. A monopolist's inverse demand function is P =100Q. The Company produces output at two facilities in Macoya and Chaguanas, Trinidad. The marginal cost of producing at Macoya is MC] (Ql)=4Q] and the marginal cost of producing at Chaguanas is MCz (Q2 ) = 292- a) Provide the equation for the monopolist's marginal revenue function. Hint: recall that Q1 + Q2 = Q- b) Determine the profit-maximizing level of output for each facility. c) Determine the profit-maximizing price. A consumer must divide $250 between the consumption of product X and product Y. The relevant market prices are PX = 5 and P), =10. a) Write the equation for the consumer's budget line. b) Illustrate the consumer's opportunity set in a carefully labelled diagram. c) Show how the consumer's opportunity set changes when the price of good X increases to $10. How does this change alter the market rate of substitution between onndq Ynnd Y