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Question 3A. (5 Point) CLO3 The demand equation for a product sold by a competitive firm...

Question 3A. (5 Point) CLO3

The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED:

Q = 500 – 10P

The total cost equation of the firm is given by the following equation:

TC = 80 + 20Q + 0.2Q2

  1. Derive the inverse demand function. (1 Point)

  1. What is the firm’s MC function? (1/2 Point)

  1. What is the firm’s MR function? (1/2 Point)

  1. What is the firm’s profit maximizing level of output? (1 Point)

  1. What is the firm’s profit maximizing level of price? (1/2 Point)

  1. How much profit will the firm make? (1 Point)

  1. Is the firm in the short run or long run? (1/2 Point)

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