Question: Suppose we have the following functions:

Demand Curve: P = 1000 – 0.0075Q

Total Cost (TC): TC = 9,000,000 + 1,000Q + 0.0025Q²

Q = output, P = price

a. Find the Output, Marginal Cost, Average Cost, Price, and Profit if the firm chooses to minimize Average Cost.

b. Find the Output, Marginal Cost, Average Cost, Price, and Profit if the firm chooses to maximize Profit.

c. Calculate the amount of consumer surplus for part (b).

d. Comment on the difference in your answers to parts (a) and (b).