• managerial economics:

Suppose the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be

AVC = 10 - 0.03Q + 0.00005Q2.

Total fixed cost is $600.

a) What is the corresponding marginal cost function?

b) At what output is AVC at its minimum?

c) What is the minimum value for AVC?

d) If the forecasted price of the firm's output is $10 per unit:

i) How much output the firm produce in the short-run?

ii) How much profit (loss) will the firm earn?