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Marginal Analysis part 1A:

1.

Global Corp. sells its output at the market price of $7 per unit. Each plant has the costs shown below:

Units of Output	Total Cost ($)
0	5
1	8
2	14
3	23
4	35
5	50

How much output should each plant produce? Please specify your answer as an integer.

2.

Suppose that you can sell as much of a product (in integer units) as you like at $62 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC=6q This means that each unit costs more to produce than the previous one (e.g., the first unit costs 6*1, the second unit (by itself) costs 6*2, etc.). If fixed costs are $70, what is the profit at the optimal output level? Please specify your answer as an integer.

3.

Assume that a competitive firm has the total cost function: TC = 1q³ - 40q² + 740q + 1600 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Using tables (but not calculus) to find a solution, how many units should the firm produce to maximize profit? Please specify your answer as an integer.

Marginal Analysis Part 1B:

1.

Global Corp. sells its output at the market price of $13 per unit. Each plant has the costs shown below:

Units of Output	Total Cost ($)
0	8
1	11
2	17
3	26
4	38
5	53
6	71
7	92

What is the profit at each plant when operating at its optimal output level? Please specify your answer as an integer.

2.

Suppose that you can sell as much of a product (in integer units) as you like at $68 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC=10q This means that each unit costs more to produce than the previous one (e.g., the first unit costs 10*1, the second unit (by itself) costs 10*2, etc.). If fixed costs are $60, what is the optimal output level? Please specify your answer as an integer.

3.

Assume that a competitive firm has the total cost function: TC = 1q³ - 40q² + 810q + 1500 Suppose the price of the firm's output (sold in integer units) is $700 per unit. Using tables (but not calculus) to find a solution, what is the total profit at the optimal output level? Please specify your answer as an integer.