Consider a competitive firm that has the cost function, TC(Q) and faces the demand P = P(Q), that is, the inverse demand function with price as a function of quantity. 1. Write down the profit function of the firm. 2. Show that the MR : P(1 + %) _ P 3. Show that (Ed MRiP' 4. Assuming a linear demand function, P : a 1362, find the MR function. 5. Draw both the demand and the MR curves. Using the expression ed = M15713, locate the point on the demand curve where ed 2 1. Also, indicate the regions where the demand is inelastic and elastic