Assume a competitive market where:
Market price equals $60,
The typical firm faces a cost curve of:
$C = 0.002q^3 + 25q + 750$,
The firm's marginal cost (MC) is:
MC= (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.)
The firm's profit maximizing output level is:
units. (Round your response to one decimal place.)
Profit at this output level is:
$. (Round your response to the nearest penny.)
As a result, firms will . This will cause the market supply to . This will continue until the price is equal to the minimum average cost of $ (Round your answer to the nearest penny). At price level the profit will be