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Total Costs for a firm are given by: TC = 1Q2 + 10Q.
Marginal Costs for that same firm are given by: MC = 2*1Q + 10.
If this firm is operating in a perfectly competitive environment and is a price-taker, what would their total profits be if the market price was $30.9?
Hint: Remember the firms produce where MC = P. Their revenue is P*Q, and profits are revenue minus total costs.
Round your answer to two decimal places. Do not include a $ sign.
How do you think the higher demand has affected the equilibrium wage? Explain your reasoning.
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