1. An oligopolistic firm faces the following demand conditions:

For price increases: Q = 250 - 50*P

For price decreases: Q' = 100 - 20*P

Marginal and Average cost conditions take the following form:

MC = 4 + 0.05*Q

ATC = 4 + 0.025*Q

a. Determine the profit maximizing/loss minimizing output level, Q, for the firm.

b. Determine the price the firm will sell the output, Q.

c. What is the profit per unit (average profit, .

d. What is the total profit, .

e. Within what range can the MC curve shift without inducing a change in price or

output.