1) Consider the following market demand and supply:

Demand: P = 18 - 4Qd

Supply: P = 7 + 3Qs

If the market is at equilibrium, what is the producer surplus?

(express answer in units of dollars, rounded to at least 2 decimals)

2) Consider an average cost structure of AC = 2/Q + Q and marginal cost structure of MC = 2Q. What is the economic profit of a profit-maximizing firm in a competitive market if the price is $60?