Suppose a perfectly competitive market firm has a cost functionshort term, C = 150 + 5q + q2, and face a market price of RM45 per unit;

(i) Calculate the level of output that maximizes profit.

(3 marks)

(ii) Calculate the number of results.

(3 marks)

(ii) Calculate the amount of profit or loss.

(4 marks)

(iv) If the fixed cost (FC) increases from RM150 to RM450, explain how does this change affect profit (loss) short term of the firm.

(5 marks)