Kelson Electronics a manufacturer of DVR's estimates the following relations between in marginal cost of production and monthly output: MC = $150 + 0.005Q

a. What does this function imply about the effect of the law of the law of diminishing returns on Kelson's short-run cost function?

b. Calculate the marginal cost of production at 1500, 2000, and 3500 units of output. c. Assume Kelson operates as a price taker in a competitive market. What is this firm's profit-maximizing level of output if the market price is $175?

d. Compute Kelson's short-run supply curve for its product.