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1. Beta Industries produces floppy disks that customers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 +2Q^2. Show all work.
a. What are the firm's fixed costs?b. What is the firm's marginal cost?
Now suppose other firms in the market sell the product at a price of $10.
c. How much should this firm charge for the product?d. What is the optimal level of output to maximize profits?e. How much profit will be earned?f. In the long run, should this firm continue to operate or shut down? Why?
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