Despondent over the Red Sox's terrible season, Prof. Gruber decides to quit his day job and start a bicycle manufacturing firm in Kendall Square. As he starts looking into the bicycle manufacturing industry, he realizes it has some interesting features. First, he realizes that it operates as a competitive industry. Second, he finds that there are two technologies used by firms in the industry. Technology 1 uses solar power, and has a cost functionC

1

(q)=q+4q

2

+32

forq>0

. Technology 2 uses electricity from the grid and is more efficient, with a cost functionC

2

(q)=q+2q

2

+32

forq>0

. Assume that we are in the long run, so firms using both technologies can shut and leave the market at 0 cost, so thatC(0)=0

for both technologies.

Compute the marginal cost for technology 1.

MC

1

(q)=