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The supply and demand equations for a hypothetical perfectly competitive market are given by QS = -100 + 3P and QD = 500 - 2P.a. Determine the firm's optimal (i.e. profit maximizing) level of output and its profit or loss.b. Graph the MR and MC curves and use the graph to find the output at which the two curves intersect.(**The graph must be used to provide the answer to the question).
Total Fixed Total VariableOutput cost cost0 $100 $ 01 100 1002 100 1803 100 2404 100 3205 100 4406 100 6007 100 8008 100 10409 100 134010 100 1800
The following quotations are from an article in the Financial Times on November 9, 2007:
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