Question 1. Suppose a Farmer produces and markets wheat in a perfectly competitive market at a Price = $4.00. The firm's total costs are given as:
TC = 100 +4Q + 8Q2
a) Find the Firm's marginal cost? Show your steps, including graphs. Review additional resources? Hint: See the rules for differentiation
b) What is the firm's demand curve? Show it on a graph and label the axes showing P and Q
c) What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well
d) What is the firm Fixed Cost? Why? Also, use a graph to support your answer.
e) What price should the firm charge? Why?