You are an owner of a restaurant for burgers. The demand function facing your business is given by:

Q =150 - 10P

1. What is the total revenue function of your business? You may also determine at what quantity of burgers sold and fixed price, total revenue is maximized.
2. What is the marginal revenue at which total revenue is maximized? How many burgers are you selling at this revenue?
3. What is the price elasticity of demand for burger at the quantity where revenue is maximized?

As a monopolist in Bahrain market, Alba has the following cost function:

TC =10 + 5Q

1. Suppose the price elasticity of demand for the product of Alba is -2, what is the price of the product?
2. Now suppose the price elasticity is -4, how Alba will change the price?

Bahrain Bay is a perfectly competitive company. The company has invested the amount of $3000 to build new plant. To produce the output, the company spends $10 worth of materials and pays $6 per hour for each worker.

1. Complete the information in the table below.

Workers	Output	Total fixed cost	Total Var. cost	Total cost	Marginal cost	Aver Var cost	Aver total cost
0	0
25	100
50	150
75	175
100	195
125	205
150	210
175	212

1. Let assume the price in the market is $25, how may unit of output Bahrain Bay will produce?
2. At this price, what is the profit or losses of Bahrain Bay? Will the company continue to produce in the short run. Explain you answer.
3. Graph your results.