BUS 640 Robert's New Way Vacuum Cleaner Company and Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG

Robert's New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q 5000 - 25P where Q is the number of vacuum cleaners per year and P is in dollars. Cost estimation processes have determined that the firm's cost function is represented by TC 1500 20Q .

Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.

What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P...