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In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company XYZ operates in the wheat market. The company produces and markets wheats at a Price = $40 per container. The firm's total costs are given as:
TC = 100 +4Q + 3Q2
a) Find the Firm's marginal cost? Show your steps, including graphs. Review additional resources? Hint: See the rules for differentiation
b) What is the firm's demand curve? Show it on a graph and label the axes showing P and Q
c) What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well
d) What is the firm Fixed Cost? Why? Also, use a graph to support your answer.
e) What price should the firm charge? Why?
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