Two monopolistically competitive firms face the same demand and total revenue functions but face different total cost functions. These demand, total revenue, and cost functions are given below.

P = 25 - 0.25Q

TR = 25Q - 0.25Q^{2}

Total cost function of firm 1: TC_{1} = 4,000 + 5Q

Total cost function of firm 2: TC_{2} = 3,000 + 7Q

- Find the optimal (profit maximizing or cost minimizing) output of each firm,.
- Find the price that each firm charges at the when producing the optimal output.
- Find the total profit or loss of each firm at the optimal output.

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