$12$ 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?

q $=9$

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

TR $=324(1$ point$)$

TC $=234(1$ point$)$

Profit $=90($This is worth $4$ points if they get it correct. Only assign the partial credit

above if they miss this answer.$)$

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

Breakeven Price $=24$