1. Suppose a competitive firm has cost function: C(q) = a + bq + cq² + dq³, where a,b,c,d are constants.
   1. What is the marginal cost function?
   2. What is the firm’s variable and average cost of output, in terms of q?
   3. What is the firm’s fixed cost?
   4. What is the firm’s profit maximization condition?

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To find the marginal cost function we need to find the derivative of the cost function with respect ... View the full answer