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Suppose that you can sell as much of a product (in integer units) as you like at $63 per unit. Your marginal cost (MC) for

Suppose that you can sell as much of a product (in integer units) as you like at $63 per unit. Your marginal cost (MC) for producing the qth unit is given by:

MC=6q

MC=6q

This means that each unit costs more to produce than the previous one (e.g., the first unit costs 6*1, the second unit (by itself) costs 6*2, etc.).

  1. If fixed costs are $90, what is the optimal integer output level?
  2. If fixed costs are $90, what is the profit at the optimal integer output level?
  3. If fixed costs are $125, what is the optimal integer output level?
  4. If fixed costs are $125, what is the profit at the optimal integer output level?

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