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.
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.
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 9P
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A firm sells its product in a
where TC is total cost and Q is output level.
a. Find the firm’s
b. Find the firm’s
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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