Q1. p = 5 - 2Q. What is the intercept on the p-axis and Q-axis, respectively? What is the slope?

Q2. The intercept of a line is 5 on the x-axis (horizontal), and the intercept is 20 on the y-axis (vertical). Write down the function of this line (express y as a function of x

Q3. The y-intercept of a line is 4, and the slope of the line is -0.6. Write down the function of this line.

Q4. Dynamic Corp. sells its output at the market price of $13/unit. Each plant has the costs shown below. How much output should each plant produce? Units of Output Total Cost ($) Marginal Cost ($)

0 6

1 9 3

2 15 6

3 24 9

4 36 12

5 51 15

6 69 18

7 90 21

Q4. The demand function of a company is Q = 20-0.4p

a. Please derive its inverse demand function, i.e., express p as a function of Q. (Q stands for quantity demanded, and p is the market price).

b. What is the marginal revenue function?

c. If the marginal cost of the company is $10. What is the optimal quantity that maximizes its profit? What is the maximized profit?

d. Graph the marginal cost and marginal revenue function in (Q, P) space. Indicate their intercepts on each axis. Indicate the optimal output and price in the graph.