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Homework answers / question archive / Suppose that a firm operating under perfect competition has a cost function given by 1 C = 10000 + 3000q – 60q2 + žq

Suppose that a firm operating under perfect competition has a cost function given by 1 C = 10000 + 3000q – 60q2 + žq. The market price that they face is P = 1000. Given this information: 1. What is the firm's profit maximization problem? 2. What is the first order condition for a maximum for this firm? 3. What output values satisfy the first order condition for this firm? (Hint: I want two numbers) 4. What is the second order condition for profit maximization for this firm? Given the condition, which of the values satisfying the first order condition is the profit maximizing output? 5. How much profit would the firm make? 6. If the cost function was instead C = 100000 + 3000q – 60q? + žq, 1,3 would the firm continue to produce given the same price? Explain your answer.