1. A pure competitive star industry consists of a large number of independent firms forming a standardized product A. For every company operating in this market total cost function is as following
TC=48-2C +0.25Q^2
1. Calculate the average cost function.
2. Describe the profit function for the company that is at an equilibrium position if we know ,that the price will be at the level of marginal cost for this pure competitive market.
2. The multi star company manufactures a product that has a selling price $11 per unit and a unit cost of $9.50. In case the fixed costs of this production are $50,000, calculate the number of the units that must be sold by the company to make a profit of $10,000.