You are the manager of a monopolistically competitive firm, and your demand and cost functions are given byQ= 36 - 4PandC(Q) = 4+ 4Q+Q².

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

P=__________- _________Q

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

Instruction:Price should be rounded to the nearest penny (two decimal places).

Price: $______________________

Quantity:______________

c. Calculate your firm's maximum profits.

Instruction:Your response should appear to the nearest penny (two decimal places).

$___________

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

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