You are the manager of a monopolistically competitive rm, and your demand and cost functions are estimated as 0= 48 4P and 26 am=4+20+02- a. Find the inverse demand function for your rm's product. p: - o points b. Determine the profit-maximizing price and level of production. Instructions: Round your response to the nearest penny (two decimal places). 0121119 Price: $ Instructions: Round your response to one decimal place. Quantity: c. Calculate your firm's maximum prots. Instructions: Round your response to the nearest penny (two decimal places). $ d. What long-run adjustments should you expect? Explain. 0 Exit will occur until profits rise sufciently high. 0 Entry will occur until profits are zero. 0 Neither entry nor exit will occur. A firm sells its product in a perfectly competitive market where other rms charge a price of $100 per unit. The rm estimates its total 27 costs as C(O)=50+12Q+202. a. How much output should the firm produce in the short run? 2 U nits points I). What price should the rm charge in the short run? a; c. What are the rm's shortrun profits? $ d. What adjustments should be anticipated in the long run? 0 Entry will occur until economic prots shrink to zero. 0 No rms will enter or exit at these prots. 0 Exit will occur since these economic prots are too low