A firm has fixed costs of 300 and variable costs of (0.75Q + 8) per unit produced.
a) Define and find an expression for the firm's total costs in terms of Q. Let the inverse demand function faced by the same firm be:
P = 201- 2Q
Where Q ≥ 0
b) Define and find the firm's total revenue function.
c) Find the firm's profit function and draw the respective graph.
d) For which production levels does the firm have no negative profits? Find the firm's optimal production level.