Cl 1.G|amdring Enterprises produces a line of ne cutlery. The demand equation for the rm's top-of- Q = 10 0.2? the-line cutlery set, Orcrist is Glamdring'stotal cost equation is TC = 50 _ 4Q + 202 1. Give the rm's short-run prot-maximizing price and output level. Verify that Glamdring is earning a positive economic prot. What is the relationship between price and average total cost? 2. Suppose that the existence of economic prots calculated in part 'a' attracts new rms into the industry. As a result, the demand curve facing Glamdring becomes Q = 4.38 - 0.095P. Assuming no change in the rm's total cost function. give the new protmaximizing price and output level. 3. Is this rm in long-run monopolistically competitive equilibrium? l_l 2. 2L group is a rm in an oligopolistic industry. It faces a "kinked' demand curve for its products, which is characterized by the following equations: P1=808Q P2=453P Suppose further that the rm's total cost equation is TC = 10 + Q + 0.0502 Give the price and output level for ZL group product. Based on your answer to #1, what is the rm's prot? Determine the range of values within which ZL's marginal cost may vary without affecting the prevailing price and output level. 4. Based on your answer to part a. what is the rm's marginal cost? Is it consistent with your answer to part c? 5. Suppose that ZL group's total cost equation changed to TC = 1 5 + 30 + 0.1 02. Will the rm continue to operate at the same price and output level? If not. what price will the rm charge and how many units will it produce? 6. Based on your answer to #5, what is the ZL group's prot? .WNT' 3. The demand equation for a product sold by a monopolistically competitive rm is_gd = 50 P with TC = 250 + 15q + 0.5q2 1 . Calculate the equilibrium price and quantity. 2. Is this rm in long-run or short-run equilibrium at the equilibrium price and quantity? a total cost equation 4. An amusement park has estimated the following demand equation for the average park guest where Q represents the number or rides per guest. and P the price per ride. The total cost of TC = 2 + 0.5Q 1 . How much should the park charge on a perride basis to maximize its prot? What is the amusement park's total prot per customer? 2. Suppose that the amusement park decides to charge a onetime admission fee. What admission fee will maximize the park's prot? What is the estimated average prot per park guest? providing a ride is characterized by the equation I-(\\