1.Suppose that a monopolist firm has the following information

Q= 50-0.1P

TC= 25+10Q+0.5Q²

P=250- 2.5Q

A.Find the profit maximizing output (5 points)

B.Find the profit maximizing price (5points)

2.Assume that a project requires an initial investment of Br. 60,000 and the rate of return is 10%. The after taxes cash flows (or net cash flows) are as follows: (5 marks)

Year 1 = 8000 Year 4 = 20,000

Year 2 = 15,000Year 5 = 20,000

Year 3 = 22,000

A.Calculate the payback period (PBP)

1. Calculate the Net present value (NPV)