A competitive firm sells its product at a price of $0.10 per unit. Its total cost function is: TC = 5 – 0.5Q + 0.

1.A competitive firm sells its product at a price of $0.10 per unit. Its total cost function is:TC = 5 – 0.5Q + 0.001Q2(a)Determine the output rate that maximizes profit or minimizes losses in the short run.(b)If input prices increase and cause the cost function to become:TC = 5 – 0.10Q + 0.002Q2What will the new equilibrium output rate be? Explain what happened to the profit maximizing output rate when input prices were increased