Ouroboros’ total cost (TC) as a function of its production levelq is given by the equation below: TC(q) = 2𝑞 2 − 12,000q +30,000,000
a. How much is the fixed cost of production for Ouroboros? (5points)
b. If q=5,000, how much is the total cost for Ouroboros? (5points)
c. Evaluate the marginal cost for Ouroboros when q=3,000. (5points)
d. For this part, suppose that Ouroboros has two corporatecustomers. The first corporations’ demand as a function ofOuroboros’ price is given by 𝐷𝐴 (𝑝) = 10,000 − 𝑝 and the secondcorporation’s demand function is given by 𝐷𝐵(𝑝) = 20,000 − 𝑝.Calculate Ouroboros’ maximum possible profit level. (15 points)
Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below: TC(q) = 2𝑞 2 − 12,000
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