Perfect Competition - the Gold Company is a member of the wheat industry, which is perfectly competitive. The price of a ton of wheat is $40. The firm's total cost function is given by:

\f1 c(q) = 1,000 + 10q + -q2 . 'MC : dc : lot 4 a. What level of output maximizes profits for this firm? Fixed cost Variable b. What is the firm's economic profit at this level of output? cost c. Should the firm produce or shut down in the short run? Explain why. a output is maximized when price = MC 40 = 10+19 40 - 10 : NI - 2 30 = 12 2 = 60