00:02
Here, the solution.
00:03
For the part c, the profit maximizing condition is p equal to mc.
00:09
If p is equal to dollar 0 .50, then p equal to mc at the output level of 260.
00:18
At this output level, tr is equal to p multiply by q, so it will be by substituting the values dollar 0 .50 multiplied by 260, which is equal to dollar 130.
00:34
The tc is equal to atc minus tc is equal to 1306 .8 is equal to $1 .76 .8.
00:49
Since the profit is negative, it means the firm is making loss.
00:56
Now, for the part d, if p is equal to dollar 1 .18, then p equal to mc.
01:04
At the output level of 435...