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Assume the following inverted demand function of a firm in the short run: P = 20...

Assume the following inverted demand function of a firm in the short run: P = 20 - Q. Now assume the total cost function of this firm is : TC = 100 + 32Q - 4Q2 The above cost function yields the MC function as 32- 8Q (a). Calculate the profit maximizing price and quantity of this firm (Hint: First derive the MR function; then set MR=MC and solve) (b) Is this firm earning a profit or incurring a loss? What is the amount of short-run profit or loss? Explain fully. Show your work in this space?

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