Question: (3 pt.) Use your quadratic cost function and the following demand curve. P = 900 - 0.03Q MR = 900 - .06Q Calculate marginal cost

(3 pt.) Use your quadratic cost function and the following demand curve.

P = 900 - 0.03Q MR = 900 - .06Q

Calculate marginal cost (MC) and average cost (AC), price (P) and marginal revenue (MR) Graph MC, AC, P, and MR as a function of output (you may use Excel or graph these relationships by hand). Show the price and output that maximizes profit in this graph. Then use algebra to calculate the price and output (view output as a measure of desired run production for the season) that will maximize the firm's profit. Calculate your profits at this price and output level.

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