Suppose you are the manager of a watch-making firm operating
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Suppose you are the manager of a watch-making firm operating

4. Suppose you are the manager of a watch-making firm operating in a competitive market. Your cost of production is given by C = Q3 – 2Q2 + 5Q + 100, where Q is the level of output and C is total cost.

A. The equations for TVC, TFC, AFC, AVC, ATC, and MC.

B. The lowest price for output that would allow the firm to break even.

C. The lowest price for output that would allow the firm to cover total variable cost (1 pts.).

D. If the price of a watch is Br. 60, how many watches should you produce to maximize profit?

E. What will your profit level be?

F. At what minimum price will you produce a positive output?

Hint
Economics"given the cost function C = Q^3 - 2Q^2 + 5Q + 100:a)TVC = dC/dQ = 3Q^2 - 4Q + 5TFC = C - TVC = Q^3 - 2Q^2 + 5Q + 100 - (3Q^2 - 4Q + 5) = Q^3 - 5Q^2 + 9Q + 95AFC = TFC/Q = (Q^3 - 5Q^2 + 9Q + 95) / Q = Q^2 - 5Q + 9 + 95/QAVC = TVC/Q = (3Q^2 - 4Q + 5) / Q = 3Q - 4 + 5/QATC = AFC + AVC = Q^2 - 5Q + 9 + 95/Q + 3Q - 4 + 5/Q = Q^2 - 2Q + 14 + 100/QMC = dC/dQ = 3Q^2 - 4Q + 5"...
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