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Your company has estimated its total cost to be
TC=7000+0.05Q+0.0015Q^2
so its marginal cost is thus
MC=0.05+0.003Q
where Q is the quantity of units produced and TC is in dollars. Since your market is relatively competitive, your company is able to sell its output for $13.55 each, which thus yields
MR=13.55
and
TR=13.55Q
1: What is the optimal level of output for your company to produce/sell?
2: What is the marginal revenue from the last unit sold?
3: What is the total revenue from selling the optimal number of units?
4: What is the total cost from selling the optimal number of units?
5: What is the profit (net benefit/net revenue/etc.) from selling the optimal number of units?
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