Question: Suppose that you estimate the following cost function for your company, which is a firm operating in a monopolistically competitive market: TC=180Q - 8Q 2

Suppose that you estimate the following cost function for your company, which is a firm operating in a monopolistically competitive market:

TC=180Q - 8Q2 + 0.5Q3

You also estimate the following demand curve for the output you are producing.

P=360 - 8Q

a.How many units of output will you produce and what price will you charge for each unit?

b.Is the company making a profit or loss at the suggested output level?How much?

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