Extra Credit Assignment $\backslash$#$3$

Chapter $14-$ The Costs of Production

Fill in the blanks on the following chart $(3$pts$)$

Chapter $15-$ Firms in Perfect Competition

Given Information:

The cost functions for a firm are as follows:

$1.$ Total Cost $($TC$)$ Function:

$\backslash [$

T C$=60+6$ Q$+$Q$^\{2\}$

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$2.$ Marginal Cost $($MC$)$ Function:

$\backslash [$

M C$=6+2$ Q

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where Q represents the quantity of output produced by the firm.

Graph $(1$pt$)$: On a single graph, plot the ATC, AVC, and MC curves for values Q ranging from $0$ to $20.$ Identify the point where MC intersects ATC and AVC. $(*$HINT$*$ You can do this in excel a lot faster than using a calculator$)$

Assume the market price P is $\backslash (\backslash$$ $18\backslash ).$ Find the quantity Q to determine the profit$-$maximizing output level.

Calculate Profit $(1$pt$)$: Once you've found the profit$-$maximizing quantity, calculate the firm's profit.