K+S Q2.8) A firm's short-run cost function for the production of gizmos is

given by the following expression:

c

(

q

)

=

10

q

2

+

200

q

+

100000

a.

Calculate the range of output over which it would be profitable for this

firm to produce gizmos if it can sell each gizmo for $2400. Calculate

the value of the output that maximizes this profit. Derive expressions

for the revenue and the profit when the widgets are sold at marginal

cost.

b.

Repeat these calculations and explain your results for the case in

which the short-run cost function is given by

c

(

q

)

=

10

q

2

+

200

q

+

200000