Consider the following information for a prfectly competitive firm during a one month time period. Assume that Q = the level of output and all costs are economic costs.

Market price = $12. Total cost = 60 + 3Q + 0.5Q² Marginal cost = 3 + Q

At the profit-maximizing or loss-minimizing output level, economic profit would equal:

Hint: Solve for Q first. Remember, a firm maximizes profit producing a level of output where the last unit has a marginal revenue equal to its marginal cost.

Select one:

a.

-$19.50

b.

+$108

c.

-$75

d.

+$118.50