3) A company has the following short run demand and cost schedule for a particular product:
Q = 200 - 5P
TC = 400 + 4Q
3a) At what price should this firm sell its product?
3b) Calculate the total profit or loss this firm would make
3c) If this is a monopolistically competitive firm, what do you think would start to happen in the long-run? Explain.
3d) Suppose in the long-run, the demand shifted to: Q = 100 - 5P, What should the firm do? Explain