The market demand is given by P = 108 - 2.5Q. If there are 12 identical firms with TC = 3Q²+ 18, what is the profit of each firm? A)- 8 B)5 C)- 18 D)9

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The profit of each firm is given by:π = TR - TCTR = P * QP = 108 - 2.5QTR = (108 - 2.5Q) * QTR = 108Q - 2.5Q^2TC = 3Q^2 + 18π = 108Q - 2.5Q^2 - 3Q^2 - 18π = 108Q - 5.5Q^2 - 18To find the profit-maximizing quantity, we take the derivative of π with respect to Q and set it equal to zero:dπ/dQ = 108 - 11Q = 011Q = 108Q = 108/11 = 9.82Since Q must be an integer, the profit-maximizing quantity is Q = 9.Substituting Q = 9 into the profit function, we get:π = 108(9) - 5.5(9)^2 - 18π = 972 - 495 - 18π = 359Therefore, the profit of each firm is $359.

The Market Demand Is Given by P = 108 -