Q1. (A) An annual income statement from Quest Realty, Inc. is shown below: Open Conde Como podatno Notentiel During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere. Calculate: a) Total explicit costs b) Total implicit costs c) Total economic cost d) Quest's accounting profit e) Economic profit Q1. (B) A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 +Q+ 0.25Q Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum? Q1. (A) An annual income statement from Quest Realty, Inc. is shown below: Open Conde Como podatno Notentiel During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere. Calculate: a) Total explicit costs b) Total implicit costs c) Total economic cost d) Quest's accounting profit e) Economic profit Q1. (B) A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 +Q+ 0.25Q Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum