1.Suppose a profit maximizing price setting firm has estimated its general demand function to be: Q = 2600 -100P +.2M -50Pr and the forecasted values of M are $20,000 and Pr =$20. Assume that the estimated AVC = 20-.07Q +.0001Q2 and Fixed Costs are equal to $22,500. a. Find the profit maximizing output and price. Note: if you use the quadratic equation to solve this problem you must include the equation, and identify the coefficients, a, b and c that you would input into a quadratic equation solver(whether on your calculator or on a solver on the web). Calculate profits (loss) at this output. If there is a loss, explain using numbers and in words, whether or not the firm should shut down. Calculate the own price elasticity of demand at the profit maximizing output. b. Suppose the Price of the related good increases to $100. What would happen to the demand for the good whose demand function you have? Explain. I am not looking for a mathematical answer in this part. c. Find the new profit maximizing output and price. Be sure to evaluate shut down. Justify your answer with numbers and in words