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.

multiple choice

a) Exit will occur until profits rise sufficiently high.

b) Neither entry nor exit will occur.

c) Entry will occur until profits are zero.