Question: A firm had the following Revenue and Cost functions under monopolistic competition: Revenue function: AR = P = 500 – 0.2 Q MR = 500 – Q…

Question:A firm had the following Revenue and Cost functions under monopolistic competition:

Revenue function:

AR = P = 500 – 0.2 Q

MR = 500 – Q

Cost functions:

TC = 5,000 + 50 Q

MC = 50

From the above information, calculate:

Equilibrium price

Equilibrium quantity

Level of profit

Also represent the equilibrium price and quantity diagrammatically.