4) A firm operating in a monopolistically competitive market faces demand and marginal revenue
curves as given below:
P = 14 – 0.1Q MR = 10 – 0.2Q
The firm’s marginal cost curves is:
where P is in dollars per unit, output rate Q is in units per time period, and marginal cost MC is in dollars.
a. Determine the price and output rate that will allow the firm to maximize profit or minimize losses.