A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2 where TC is total cost and Q is output level. a. Find the firm’s average total cost function.  b. Find the firm’s average variable cost function.  c. Find the firm’s marginal cost function.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter12: Firms In Perfectly Competitive Markets
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A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2
where TC is total cost and Q is output level.
a. Find the firm’s average total cost function. 
b. Find the firm’s average variable cost function. 
c. Find the firm’s marginal cost function. 
d. Given the price is $100, what is the profit-maximizing output level? 
e. Given the price is $100, what is the profit level? 
f. Over time, is there going to be entry or exit in this competitive market? Why? 

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