Practice3

3. [Perfect Competition Pet Toys Emporium] Pedro's Pet Toys Emporium company operates in a competitive industry. His short-run total costs are TC = :03 2Qz + SQ + 10. The marginal cost of these furry friendly trinkets is MC = 02 4Q + 5. a. [.4 points] What are Pedro's variable costs [this is a formula, not a number]? b. [4 points] What are the average fixed costs [this is a formula, not a number}? c. [7 points] The market price for a Pet Toy is $10. How many stlcks should Sunny ' b:vb24ac ) / produce? (Reminder: the quadratic fermula is Q = u d. [7 points] What are their revenues and total costs? e. [4 points] What are his profits? Is this the long-run equilibrium