Suppose the market for bread is a perfectly competitive market. The total cost function for Ben's Bakery, a typical bakery, is C = 100 + 40q - 12q 2 + 2q 3 .

a. i) What is the fixed cost of Ben's Bakery?

ii) Find the average variable cost function for Ben's Bakery.

b. Find the marginal cost function for Ben's Bakery. Show the steps.

c. Suppose the prevailing market price of bread is $40. Find Ben's Bakery profit-maximizing output level of bread, and its profit. Show the steps clearly.