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A monopolistically competitive firm has the following demand and total cost curves: Demand: P= 9 -0.25Q TC= 124 -16Q + Q 2 a. Find the

A monopolistically competitive firm has the following demand and total cost curves:

Demand: P= 9 -0.25Q

TC= 124 -16Q + Q²

a. Find the price and quantity that maximizes profits for the monopolistically competitive firm

b. How much profits does the monopolistically competitive firm make at the profit-maximizing level of quantity?

c. Explain the following: What adjustments do you expect to happen in the market in the long-run? What will happen to the demand curve of the firm (will it increase/decrease)? How much profits do you expect the firm to earn in the long run?

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