A typical perfectly competitive firm faces market demand and supply given by Q, = 1000 - 20P and Q, = 30P. The firm has MC=Q and ATC = 0.5Q + 40/Q. The firm's total cost is TC = 0.5Q + 40. Complete parts a throughg below ...... a) How much will the firm produce maximize profit? Ounit(s) b) What is the profit loss for the firm in the short run? of $. (Round to the nearest cent as needed.) There will be a c) How many firms are there in the industry?
A typical perfectly competitive firm faces market demand and supply given by Q, = 1000 - 20P and Q, = 30P. The firm has MC=Q and ATC = 0.5Q + 40/Q. The firm's total cost is TC = 0.5Q + 40. Complete parts a throughg below ...... a) How much will the firm produce maximize profit? Ounit(s) b) What is the profit loss for the firm in the short run? of $. (Round to the nearest cent as needed.) There will be a c) How many firms are there in the industry?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter10: Strategy: The Quest To Keep Profit From Eroding
Section: Chapter Questions
Problem 9MC
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the option for b is loss or profit
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