1) Assume the following regarding a firm in Perfect Competition:

Market Demand =Qd = 550 - 5 P

Market Supply =Qs = 10 P

Each identical firm has:

MC = 5 q

ATC = 15

1.What price will the firm charge?

2.What is the firm's equilibrium quantity?

3.What is the firm's total cost?

4.What is the firm's total revenue?

5.What is the firm's profit or loss?(use a negative sign to indicate a loss)

6.Is the firm in a short-run or long-run situation?

2)Consider the following original demand-supply functions, where:

Demand:P = 85 - Q

Supply:P = 10 + Q

1. Original equilibriumprice is ?

2. Original equilibrium quantity is ?

Further consider a tax of 5 per unit of output and a new supply function:

3. The new consumerprice after the imposition of tax is ?

4. The newquantity after the imposition of tax is ?