The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed:P=1,2659QP=1,2659QThe cost analysis department has estimated the total cost function for the poster bed asTC=Q3315Q2+5Q+24,000TC=Q3315Q2+5Q+24,000

Short-run profits are maximized when the level of output is

and the price is

.

The total profit at this price-output level is

.

The point price elasticity of demand at the profit-maximizing level of output is .

The level of fixed costs the firm is experiencing on its bed production is

.

What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated?

	Increase	No change	Decrease
Price Charged
Output Produced
Profits Generated