A firm’s short-run cost function for the production of gizmos is given by the following expression: C(y) = 10y2 + 200y + 100 000 a. Calculate the range of output over which it would be profitable for this firm to produce gizmos if it can sell each gizmo for $2400. Calculate the value of the output that maximizes this profit. 2.7 PROBLEMS 47 b. Repeat these calculations and explain your results for the case in which the short-run cost function is given by C(y) = 10y2 + 200y + 200 000