The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand function for its product:

Q=120,00010,000PQ=120,00010,000P

where Q is the quantity demanded per year and P is the price per lamp. The firm's fixed costs are $12,000 and variable costs are $1.50 per lamp.

What is the total revenue (TR) function in terms of Q?

120,000Q10,000Q2120,000Q10,000Q2

12QQ210,00012QQ210,000

120,000QQ210,000120,000QQ210,000

QQ210,000QQ210,000

What is the marginal revenue (MR) function?

12Q5,00012Q5,000

120,00020,000Q120,00020,000Q

120,000Q5,000120,000Q5,000

1Q5,0001Q5,000

What is the total cost (TC) function in terms of Q?

12,000Q+1.50Q212,000Q+1.50Q2

12,000+1.50Q12,000+1.50Q

1.50Q1.50Q

1.50Q21.50Q2

What is the marginal cost (MC) function?

3Q3Q

1.501.50

12,000+3Q12,000+3Q

12,000+1.50Q12,000+1.50Q

Which of the following is an equation for total profits () in terms of Q?

=Q210,000+13.5Q=Q210,000+13.5Q

=Q210,000+10.5Q=Q210,000+10.5Q

=Q210,000+10.5Q12,000=Q210,000+10.5Q12,000

=Q210,000+13.5Q12,000=Q210,000+13.5Q12,000

Profits are maximized when output is _______ and the price is ______. Total profits at this level are ________.

What model of market pricing behavior has been assumed in this problem?