Problem
Hack's Berries faces a short-run total cost of production given by TC = Q3 - 12Q2 + 100Q + 1,000.
a. What is the level of Hack's fixed cost?
b. What is Hack's short-run average variable cost of producing berries? (Express AVC as a function of Q.)
c. If the price of berries is $60, how many berries should Hack produce? How do you know? [Hint: You may want to carefully graph the AVC function you derived in part (b).]
d. If the price of berries is $73, should Hack be producing berries? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.