A firm has developed a new product for which it has a registered trademark.

The firm's market research department has estimated that the demand for this product is Q(P,A)=11,600-1,000P+20A^1/2

where Q is annual output, P is the price, and A the annual expenditure for advertising.

The total cost of producing the new good is C(Q)=.001Q^2+4Q.

The unit cost of advertising is constant at m=1.

What is the optimal output level Q*? 2500. 2000. 1000. 1500

What is the optimal price P*? 9. 14. 10. 18

What is the advertising level A* for the firm? 400. 250. 800. 100

What is the firm's profit if it follows this strategy? 7,600 8,800 7,200 8,400

What is consumer surplus if the firm adopts this strategy? 1,500 1,300 2,000 1,100

note that the answer choices are listed. anything else is considered wrong. CS options are listed. 1600 is not an option.