The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine beers is a company that produces the beer and has a total cost funtion of TC = 480 + Q2. It also has a marginal cost given by MC = 2Q, where Q is barrels of beer produced each week.
A. Plot fine beers demand curve and marginal cost (MC) curve.
B. Plot fine beers average total cost (ATC) for output levels of 10, 20, 30, 40 barrels
C. what is the profit maximizing level of output for Fine Beer in barrels? (0, 10, 15, 20, 25, 40)
D. at the profit maximizing level of output what is Fine Beers profit? (0, 100, 400, -80, -480, -880)
E. given all the information above you would expect firms to? (exit the market, enter the market, or neither)