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A Firm Has Total Cost Given by TC = Q3

question 14

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A firm has total cost given by TC = q3 - 20q2 + 200q + 576. Suppose the firm faces a marginal revenue curve given by P = 200.
i)What is the optimal quantity for this firm to produce?
ii)Calculate the firm's profit, fixed cost, and variable cost if it produces 12 units of output?
iii)What effect would each of the following have on MC?
a)The price of the variable input decreases.
b)The price of the fixed input increases.
c)A technological improvement increases the returns to scale of the production process.


Definitions:

Americas

The collective name for the North and South American continents, encompassing a wide range of cultures, languages, and nations.

Columbus' Voyages

The series of expeditions led by Christopher Columbus across the Atlantic Ocean, aiming to find a westward sea passage to Asia. The first voyage in 1492 inadvertently discovered the Americas.

Mississippian Societies

Indigenous cultures and peoples in North America known for their complex societies, mound-building practices, and thriving agricultural communities prior to European contact.

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