You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated asQ= 46 2PandC(Q) = 6+ 2Q+Q².

a. Find the inverse demand function for your firm's product.

P=Q

b. Determine the profit-maximizing price and level of production.

Instructions:Round your response to the nearest penny (two decimal places).

Price: $

Instructions:Round your response to one decimal place.

Quantity:

c. Calculate your firm's maximum profits.

Instructions:Round your response to the nearest penny (two decimal places).

$

d. What long-run adjustments should you expect? Explain.

multiple choice

• Entry will occur until profits are zero.
• Neither entry nor exit will occur.
• Exit will occur until profits rise sufficiently high.