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You are the manager of a monopolistically competitive firm and your demand and cost functions are...

You are the manager of a monopolistically competitive firm and your demand and cost functions are given by: P = 10 - 0.5Q and C = 104 - 14Q + Q2

a. Determine the profit maximizing price and quantity.

b. What the firm's profits or losses, given demand and cost functions?

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

d. What is the equilibrium price in the long-run? Is the firm realizing economic profits or incurring any losses?

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