Problem 2. Basketball Production (30 points) Balding is a Basketball producing rm that has seen better days. Its technology is old and expensive. Total costs of the old basketballproducing technology are given by TC, = so + 2Q + 0.5Q2, where Q is balls produced per hour. The Balding managers are thinking about investment in a new technology. Total costs would then be given by: TEN = 100 + 0.1:;2 Balding is producing for the lowquality end of the market, and its basketballs are undifferentiated. This market is perfectly competitive and the typical market price for a ball is $10. a. Under the old technology, what is the profitmaximizing output of Balding? What are prots at this output? b. If Balding cannot avoid paying the xed cost of the old technology, should it continue to produce basketballs? c. If Balding operated only the new technology, what would be the optimal output, and what would be its prots