The demand a monopoly faces is p = 100 - Q+A 0.5, where Q is its quantity, p is its price, and A is the level of advertising. Its marginal cost of production is $25, and its cost of a unit of advertising is $1. What is the firm's profit equation? The monopoly's profit equation () as a function of Q and A is = (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The monopoly's profit-maximizing price is p = $ , quantity is Q = [ and advertising is A = (Enter numeric responses using real numbers rounded to two decimal places.) The demand a monopoly faces is as follows: Here, p=100-Q+45 Q is the quantity P is the price A is the level of advertising Marginal cost of production is 10 Cost of unit of production is 1. Total revenue is as follows: TR-(100-Q+45) The total cost of production of the monopoly is as follows: Thus, TC = MCXQ TC=100 The level of advertising is A, therefore the total cost is as follows: TC=TC+A It implies, TC=10Q+A Thus, the profit function is as follows: T=TR-TC = (100-Q+405)Q-100-A Partially differentiate the above profit function with respect to Q and A respectively to get the first order condition as follows: 100-20+405-10 8Q (0.50)4-05-1 = 0 Next, solve the second equation as follows: (0.50)-1-0 0.50 = 1 0.5 0.50=405 Substitute the value of 405 in the equation as follows: 100-20+0.50-10=0 90-1.50=0 Thus, the value of Q is 60. 90 1.5 = 60 Calculate the value of A as follows: 00-20+405-10=0 100-120-10+40.5 = 0 40.530 Square the digits on both sides to get the value of A as follows: A=900 Calculate the value of p by substitute the values of Q and 40.5 in the demand function as follows: p=100-60+30 $70 Thus, the price is $70 Thus, the profit maximizing price is $70, quantity is 60 and level of advertising is 900