16. For the firm in problem 15, the manager estimated the average variable cost function as where AVC was measured in dollars per unit and Q is the number of units sold.

a. What is the estimated marginal cost function?

b. What is the optimal level of production in 2011?

c. What is the optimal price in 2011?

d. Check to make sure that the firm should actually produce in the short run rather than shut down.
In addition, the manager expects fixed costs in 2011 to be $22,500.

e. What is the firm’s expected profit or loss in 2011?