Metro Alarm Systems sells basic digital alarm systems across the Minneapolis Metro. The demand and cost information are as follows:

P= 1000 - 2Q TC=31,250 +200Q The cost function includes a normal return, so any profit could be considered economic profit. The structure of the market is monopolistic competition. A. What are the firm's current price/output combination and profit level? Is the market in equilibrium? Include a brief explanation for your answer. B. Calculate the equilibrium price and quantity and demonstrate that this is indeed a long run equilibrium. Explain why this is a long run equilibrium