An oil producer plant costs are given by: TC = 5 + 100 + 200². Where Q represents of barrels produced. The firm can sell oil on the wholesale market for $110 per barrel. a. Calculate total fixed costs, average total costs, and marginal cost functions (you can just use a table for the first 6 values), as well as marginal revenue. b. Calculate the profit maximizing level of output. c. Calculate the profit maximizing level of output if the price rises to 190.

Q&A Education