4) A firm operating in a monopolistically competitive market faces demand and marginal revenue

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:

           MC=-10+.4Q

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.