The textile company "UMITEX" works in a perfectly competitive market and has found the total production cost (TC) function for the company as below.

TC= 150+Q+0.5Q²

Where:
TC = total cost

Q = number of textiles produced

Required:

a. How much production must be produced by the company in order to get a normal profit?

b. What are the total costs and average costs of the firm when earning normal profits?

c. What is the price per unit of textile products produced in the normal profit.

Please give long/detailed explanation!


notes: Normal Profit = BEP or Zero Economic Profit  (TR=TC)

TR = P x Q

TC = FC + VC or AC x Q

TR = TC

(P x Q) = (AC x Q) or 

(P =  AC)

etc....


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