Question: 8. (2 points) Consider the cost function TO (q) = cq2 (2) where c > 0 and q 2 0 is output. Suppose that the

8. (2 points) Consider the cost function TO (q) = cq2 (2) where c > 0 and q 2 0 is output. Suppose that the firm is a price-taker and let p > 0 be the price of one unit of output. (a) What is the firm's profit as a function of q. (0.5 points) (b) Solve for the optimal level of q. (1 point) (c) Sketch the supply curve. (0.5 points)

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