A firm operating in a monopolistically competitive market faces a demand curve (function) as given below: P = 10 – 0.1Q. The firm’s total cost curve (function) is: TC = – 10Q + 0.0333Q3 + 130 a. Determine the price and output rate that will allow the firm to maximize profit or minimize losses. b. Determine (compute) the monopoly power of the firm.
