Consider a market with the following inverse demand function, p = 140 - 3Q and constant marginal cost = 20.   1. Write down the total revenue (TR) function and the marginal revenue (MR) function (in terms of Q).   2. Write down the total cost (TC) function and the marginal cost function.   3. Find the profit maximizing quantity and price.   4. What is the firm’s profit?

A firm in a perfectly competitive industry has fixed costs of FC = 3 and average variable costs of AVC = 2 + 8q. a) What are the firm’s variable costs (VC)?  b) What is the firm’s total cost function?  c) If the price is $18, how much does the firm supply?  d) Does the firm continue to supply this quantity in the short run?  e) Suppose there exists a standard market demand function from consumers (downward sloping). Please provide logical discussion about how the market achieves short-run equilibrium.  f) Suppose the market demand was given by Qd(p) = 50 – p. Suppose further that a sales tax of £1 per unit is imposed in the market. Calculate the deadweight loss resulting from this tax. Assume the market consists of 100 firms with identical cost functions.

The curves show the marginal cost (MC), average variable cost (AVC), marginal revenue (MR), and average total cost (ATC) curves for a firm that sells mid-range cars in a competitive market. Use the area tool to draw the area representing the firm's profit or loss, if the firm produces 6,000 cars. Your answer should be a rectangle drawn with four corners.

For a firm with a downward-sloping demand curve, which of the following is true at the profit-maximizing level of output?  For this case, let's assume that marginal costs are positive.a) demand is perfectly inelastic b) demand is inelastic but not perfectly inelastic c) demand is unit-elastic d) demand is elastic but not perfectly elastice) demand is perfectly elastic