(Answered) Profit-maximizing firm with the total cost function

Economics

For this portion, use calculus. Treat each case separately, and show all your work.

1) Consider a perfectly competitive, profit-maximizing firm with the total cost function TC(q)=16q^4 + 6q^3 - 4q^2 + 2q +1400.

a. Identify its variable and fixed cost

b. find an expression for its marginal cost

c. Calculate total cost and marginal cost when the quantity produced is 10 units.

2) Consider a perfectly competitive, profit-maximizing firm that charges $60 per unit to customers and has a total cost function as follows: TC(q) = 3q^2 - 12q + 2.

a. Find its profit-maximizing quantity by using MR and MC

b. Set up its profit function and SHOW that we can get the same profit-maximizing quantity you found in the previous question using profits as our starting point.

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Macroeconomics, Economics

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