What level of output will the firm produce

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Suppose that a competitive firmâs marginal cost of producing output q is given by MC(q)=3+2q. Assume that the market price of the firm's product is $9.

a) What level of output will the firm produce to maximize profit?

b) What is the firm's producer surplus?

c) Suppose that the average variable cost of the firm is given by AVC(q)=3+q. Suppose that the firm's fixed costs are known to be $3. What is the firm's profit level? 

Use graphs to explain answers, if applicable

Reference no: EM131480254

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