A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 100+8q+ +2q² and a marginal cost function (MC) of MC(q) = 8 +4q. At the given market price (P) of $18, the firm is producing 2.50 units of output. Is the firm maximizing profit? Yes. What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 100+8q+ +2q² and a marginal cost function (MC) of MC(q) = 8 +4q. At the given market price (P) of $18, the firm is producing 2.50 units of output. Is the firm maximizing profit? Yes. What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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Transcribed Image Text:A firm produces a product in a competitive industry and has a total cost function (TC) of
TC(q) = 100+8q+2q²
and a marginal cost function (MC) of
MC(q) = 8 +4q.
At the given market price (P) of $18, the firm is producing 2.50 units of output.
Is the firm maximizing profit? Yes
What quantity of output should the firm produce in the long run?
The firm should produce unit(s) of output. (Enter your response as an integer.)
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