A competitive firm estimates its average variable cost function to be - 94883

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A competitive firm estimates its average variable cost function to be AVC = 125 - 0.21Q + 0.0007Q2 . The firm's total fixed cost is $3,500.) -At what level of output does the AVC reach its minimum? What is the AVC at this output level? -Suppose the price of the product is P = $125. Determine the profit maximizing level of output? Compute the firm’s profit. If the firm is losing money, should it produce? Explain.
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(a) AVC = 125 – 0.21Q + 0.0007Q^2

(d/dQ)(AVC) = -0.21 + 0.0014Q

For AVC to b