1.) Imagine we are in a time where firefighting is provided in a competitive market.

Demand for services is P = 40 - 2Qd

Supply of services is P = 7 + Qs

What is the equilibrium quantity of firefighting services?

2.) (pricing power) The main producer in the camping tent market has pricing power. They face the curves:

MC = 4Q

AC = 2Q + (32/Q)

Demand: P = 40 - (1/2)*Qd

MR = 40 - Qd

The profit-maximizing quantity is ______ .

The profit-maximizing price is ______ .

The average cost will be _____.

The profit will be ______.

If your answer is not whole number, round to the nearest whole number.