2.) Commercial Recording, Inc. is a manufacturer and distributor of reel to reel recording decks for commercial recording studios.Revenue and cost Relations are: TR= $3,000Q-$0.5Q^2 MR= (Delta Symbol) TR/ (Delta Symbol) Q=$3,000-$0.3Q TC=$100,000+$100Q + $0.1Q^2 MC= (Delta Symbol)TC/(Delta Symbol)Q=$1,500 + $0.2Q A.Calculate output, marginal cost, average cost, price and profit at the average cost-minimizing activity level. B.) Calculate these values at the profit-maximizing activity level. C.) Compare and discuss your answers to parts A and B XXXXXXXXXXGurgling Springs, Inc. Is a bottler of natural spring water distributed throughout New England states.Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains.Operating experience during the past year suggests the following demand function for its spring water: Q=250- 100P XXXXXXXXXXPOP XXXXXXXXXX3A Where Q is quantity in thousands of five-gallon containers, P is price ($), Pop is population, I is disposable income per capita ($), and A is advertising expenditures ($). A.) Determine the demand curve faced by CPI in a typical market where P= $4, Pop= 40,000 persons, I=$3,000 and A=$ 4,000.Show demand curve with quantity expressed as a function of price, and price expressed as a function of quantity. B.) Calculate the quantity demanded at prices of $5, $4, and $3 C.) Calculate the prices necessary to sell 1,250, 1,500 and 1,750 thousand s of five gallon containers XXXXXXXXXXZ-Best Pizza recently decided to raise its regular price on large pizzas from$9 to $12 following increases in costs of labor and materials.Unfortunately; sales dropped sharply from8, 100 to 4.500 pizzas per month. In an effort to regain lost sales-Best ran a coupon promotion featuring $5 off the new regular price. Coupon printing and distribution costs totaled $100, and caused only a modest increase in the typical advertising budget of $ 2,400 per month. The promotion was judged a success as it proved highly popular with consumers. In the period prior to expiration, coupons were used on 40% of all purchases and monthly sales rose to 7,500 pizzas. A.)Calculate the arc price elasticity implied by the initial response to Z-Best’s price increase. B.)Calculate the effective price reduction resulting from the coupon promotion. C.) In light of this price reduction, and assuming no change in the prices elasticity of demand, calculate Z-Best’s arc advertising elasticity. D.)Why might the true arc advertising elasticity differ from that calculated in Part C? XXXXXXXXXXLast week, Wally’s Burgers, Inc. reduced the average price on the ½-pound Papa burger by 1%.In response, sales jumped by 2%. A.) Calculated the point price elasticity of demand for Papa burgers. B.)Calculate the optimal price for Papa burgers if marginal cost is $1 per unit XXXXXXXXXXThe following relations describe demand and supply conditions in the lumber/forest products industry: Qd= 75,000-10,000P (Demand) Qd=-15,000+50,000P (Supply) Where Q is quantity measured in thousands of board feet (one square foot lumber, one inch thick) and P is price in dollars. A. Complete the following table: Price (1) Quantity Supplied (2) Quantity Demanded (3) Surplus (+) or Shortage XXXXXXXXXX)=(2)-(3) $ XXXXXXXXXX XXXXXXXXXXB.)What is the price and quantity in equilibrium?