The marginal cost function A competitive firm estimates its average variable cost function to be AVC=125-21Q+0007Q^2(squared) The firm’s total fixed cost is $3,500 a The marginal cost function associated with this average variable cost function is SMC =__________________________ b AVC reaches its minimum at ______ units of output Minimum AVC is _________ c Suppose the price of the product is P = $125 The firm should produce _________ units of output The firm earns a profit (loss) of __________________ d Suppose the price of the product is P = $115 The firm should now produce _________ units of output Its profit (loss) will be _________ e Suppose the price of the product falls to P = $100 The firm should produce _________ units of output Its profit (loss) will be ____________

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The marginal cost function

A competitive firm estimates its average variable cost
function to be AVC=125-21Q+0007Q^2(squared)

The firm’s total fixed cost is $3,500

a The marginal cost function associated with this average
variable cost function is

SMC =__________________________

b AVC reaches its minimum at ______ units of output
Minimum AVC is _________

c Suppose the price of the product is P = $125 The firm
should produce _________ units of output The

firm earns a profit (loss) of __________________

d Suppose the price of the product is P = $115 The firm
should now produce _________ units of output

Its profit (loss) will be _________

e Suppose the price of the product falls to P = $100 The
firm should produce _________ units of output

Its profit (loss) will be ____________