Company Z's total cost function is C = 105 + 50+ 6.52 where Q is the number of units of output. The demand curve for the firm's product is P=260-Q where P is the price of the product. Assume that it is a monopoly.

a) What is the equation of the total revenue of the firm in terms of quantity Q? [2]

b) Find an expression for the profit of the firm in terms of quantity Q. [3]

c) Take first derivative of the profit function you calculated on part b). Calculate profit maximizing quantity by setting the first derivative equal zero. [3]

d) What price should the firm charge for its product when selling profit maximizing quantity? [1] e) What is the maximum profit? [