Suppose that

TC = 500 + 3q^2

Which means that

MC = 6q

In this problem do the analysis for a perfectly competitive firm that faces an industry price p = $222 per unit sold.

a (2 - points) What is the profit-maximizing level of output? Show your work. b (2 - points) What is the average total cost at the profit-maximizing level of output? (show your work) c (2 - points) What is the firm's profit at the profit-maximizing level of output? (Show your work) d If the firm's profits are positive in part c the industry will begin to adjust (there will be entry). If there are negative profits the industry will begin to adjust (there will be exit) 1 (2 - points) At what price will entry (or exit) stop? (Hint: solve

/ = 500/q^2 + 3 =0 2 (2 - points) What is the market price that will bring output to this point?