6. Exercise 10.8 The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P = 3,005 IOQ The cost analysis department has estimated the total cost function for the poster bed as TC = Q73 15Q2 + 5Q + 24,000 Short-run profits are maximized when the level of output is :l and the price is _. The total prot at this priceoutput level is . The point price elasticity of demand at the profit-maximizing level of output is V The level of fixed costs the firm is experiencing on its bed production is _. What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated? Increase No change Decrease Price Charged O O 0 Output Produced O O O Profits Generated O O O Continue without saving