You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 124 – 16Q + Q 2 . [ NOTE à MC(Q) = -16+2Q] a) Find the inverse demand...

You are the manager of a monopolistically competitive firm, and your demand and cost        functions are given by Q = 36 – 4P and C(Q) = 124 – 16Q + Q².

            [NOTE à MC(Q) = -16+2Q]

1. a) Find the inverse demand function for your firm’s product.


2. b) Determine the profit-maximizing level of production.


3. c) Calculate your firm’s profits level.


4. d) What long-term adjustments should you expect? Explain