You own and operate a t-shirt stand. Your demand curve is given by P=60 - 0.25Q. Your marginal cost curve is MC=10. Your fixed costs equal $300.

a. Graph your demand and marginal cost curves.

b. Derive and graph your marginal revenue curve.

c. Calculate profit maximizing price and quantity and show them on your graph.

d. Calculate your profit.

e. Calculate consumer surplus at the profit maximizing P and Q.