A perfectly competitive firm has their total revenue and total cost curves given by:

TR = 100Q

TC = 1,000 + 4Q + 0.4 Q2

1. Find the profit-maximizing output for this firm (5 points).

MR =

MC =

Q* =

1. What profit does the firm make? (5 points)

Profit =

B. A monopolist has demand and cost curves given by:

QDm = 1000 - 2P or P = 500 - Q/2

TC = 5,000 + 50Q

1. Find the monopolist's total revenue, marginal revenue, marginal cost and their profit-maximizing quantity and price (10 points - 2 points each).

TR =

MR =

MC =

Q* =

P* =