1.Nordic Track Company manufactures treadmills and sells them under conditions of monopolistic competition. The owner of the company has estimated its demand function as P = 2575 - 5Q, where P is in dollars and Q is in number of Treadmills sold per week. The company believes its weekly expenses vary with output according to the equation

TC = 25,000 + 25Q - 5Q² + 1/3 Q³.

Based on these equations and using concepts from Chapters 4, 7 and 9:

a.Determine the firm's short-run profit-maximizing price and output rate.

b.How much profit will the firm earn at this price and output rate?

c.Due to supply chains problem associated with Covid, Nordic Trac total fixed costs rise by 20%. Calculate the impact upon the firm's price, output and profits. How will you account for these results?Explain.

What other means can Nordic Track sell more of its treadmills in today's market environment.Give specific examples