Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 + 2q2, where q is the level of output and C is total cost.
a. If the price of watches is $100, how many watches should you produce to maximize profit?¨
b. What will the profit level be?¨
c. At what minimum price will the firm produce a positive output? (in short-run)