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Acme (not the same company as in question 1) is a small producer of maple syrup, which it sells in a competitive market at the
Acme (not the same company as in question 1) is a small producer of maple syrup, which it sells in a competitive market at the going market price . An econometric estimation of Acme's costs suggests that this month (December 2023), due to existing commitments and contracts with suppliers, its cost function is: () = 0.002 3 0.6 2 + 75 + 2,312, where is the number of gallons of maple syrup it produces in a month and is its (total) cost per month in dollars. This implies that the firm's marginal cost is () = 0.006 2 1.2 + 75. a) Suppose Acme faces a going market price of $53.40 per gallon and is currently producing 180 gallons a month. Is Acme maximizing its profit? Why or why not? Explain
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