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1.A company that produces T-shirts and sells its items in a perfectly competitive market. The manager forecasts the wholesale value of T-shirts next year to be $7.00. The company's estimated marginal cost isSMC=12-0.005Q+0.0000008Q^2
where Q is the number of T-shirts produced and sold each month. The Company will have a fixed cost of $2,000 per month.[A] What is:(a). The total cost function for the firm?
(b). The average total cost function for the firm?
(c). The average variable cost function for the firm?
[B] At what output level does average variable cost reach its minimum value? What is the value (in dollars) of the average variable cost at its minimum point?
[C] How many T-shirts should the company produced and sell each month?
[D] What is its monthly profit (loss)?
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