$1.$

$(12$ points$)$

Suppose in the short run a perfectly competitive firm has variable cost $=2$q

$2$

$,$ and

MC $=4$q where q is the quantity of output produced. Also, the firm has fixed cost F $=$ $$72.$

a$)(4$ points$)$ If the market price of the product is $$36,$ how much output should the firm produce

in order to maximize profit?

b$)(4$ points$)$ How much profit will this firm make?

c$)(4$ points$)$ What is the Breakeven price?