Answer the following questions in 1 (1 - point) At what value of q is AVC at its minimum? (Hint: The easiest way to calculate this value is to solve AVC - MC = 0 for q.) 2 (1 - point) At the above output level what value does AVC take? 3 If the forecasted price of the firm's output is $10 per unit: a (2 - points) How much output will the firm produce in the short run? b (2 - points) How much profit (loss) will the firm earn)? 4 If the forecasted price is $7 per unit: a (2 - points) How much output will the firm produce in the short run? (Keep only 2 decimals) b (2 - points) How much profit (loss) will the firm earn)? (Keep only 2 decimals)

AVC = 10-0.03q+0.00005q^2

 

ATC = 10-0.03q+0.00005q^2 +100/q

and

MC = 10-0.06q+0.00015q^2