1.You are the manager of a firm that has an exclusive license to produce your product. The inverse market demand curve is P = 900 - 1.5Q. Your cost function is TC = 5Q + Q².

A.Determine the output you should produce and the price you should charge

B. Compute your profits

1.Each year the US considers its trading status with China, and vice versa. The trade relationship between the two countries is now rather cold. A trade sanction imposed by one country is likely to involve some retaliatory measures by another. The Game below reflects the potential economic gains associated with a two-outcome game between the US and China. The following table contains the hypothetical dollar value of all trade flow benefits to the United States and China.