Chapter 8, exercise 4:

a) Profit is maximum at,

Marginal Cost (MC) = Marginal Revenue (MR)

MR or price given as $100, the quantity will be calculated as follows:

4q = 100
q = 25

b) Profit = Total Revenue – Total Cost

Profit = P * q – (200 + 2 * q^2)
Profit = 100 * 25 – (200 + (2 * 25^2))
Profit = 2,500 – (200 + 1,250)
Profit = $1,050

c) In the short-run, Capital (K) is constant and the firm will produce,
if the R > VC. Here, the VC is 2q2.

AVC = VC/q = 2q.

The MC is greater than AVC for any quantity greater than 0.

Thus, the firm will produce in the short-run till the price remains positive.