1. A firm in a monopolistically competitive market has a demand function: P = 230 - Q, while a production cost function: TC = Q + 30Q + 400.

Calculate the number of units that must be sold to generate maximum profit and the maximum profit itself!

2. In producing a certain type of good a monopolist faces the demand function:

P = 64 - 6Q

While the average cost function is shown by the equation:

AC = Q + 2

From this information, calculate:

a. The price level that must be determined by the monopolist so that the profit/loss obtained is maximum/minimum!

b. The amount of the maximum profit / minimum loss!