Problem 08-07 (algo)

You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated asQ= 36 4PandC(Q) = 4+ 2Q+Q².

a. Find the inverse demand function for your firm's product.

P=9 .25Q

b. Determine the profit-maximizing price and level of production.

Instructions:Round your response to the nearest penny (two decimal places).

Price: $___________

Instructions:Round your response to one decimal place.

Quantity:_________

c. Calculate your firm's maximum profits.

Instructions:Round your response to the nearest penny (two decimal places).

$__________