i. The output that minimizes average cost is:
AC = min, if "AC'(q) = 0" , so:
"2 - 4\/q^2 = 0,"
q = 1.41 units.
ii. The output that maximizes revenue is:
TR = max, if "TR'(q) = 0" , so:
14 - 4q = 0,
q = 3.5 units.
III. The output that maximizes profit is:
MR = MC, so:
14 - 4q = 4q - 2,
q = 2 units.
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