Question
Please I need help. Suppose that TC = 10 + 5Q - 2Q2 + Q3/3, thus, MC = 5 - 4Q + Q2. Recall that
Please I need help.
Suppose that TC = 10 + 5Q - 2Q2 + Q3/3, thus, MC = 5 - 4Q + Q2. Recall that the quadratic formula to solve the equation: aX2 + bX + c = 0 is: = 2 4/2 a. How much will this profit-maximizing firm produce if price is $4? Calculate profit. What will happen in the long run? b. How much will this profit-maximizing firm produce if price is $9? Calculate profit. What will happen in the long run? c. Calculate the SR supply curve if the firm treats its fixed costs as sunk (Note: you do not need to make Q a function of P - just keep P as a function of Q). d. Graph the MC, AVC, and ATC on your graphing calculator. Do your answers make sense?
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