In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market is $50. a. What is the Marginal Cost for the firm? b. What is the Profit Maximizing Output? c. What is the Total Profit the firm receives?

In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market is $50. a. What is the Marginal Cost for the firm? b. What is the Profit Maximizing Output? c. What is the Total Profit the firm receives?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 2QP

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Question

In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market is $50.

a. What is the Marginal Cost for the firm?

b. What is the Profit Maximizing Output?

c. What is the Total Profit the firm receives?

d. Should this firm continue to produce in the short run? Please explain.

e. If the price is $20, should the firm continue to produce? Please explain.

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