Q5. Company X, works in perfectly competitive market. where the average $40 price equals marginal revenue, P = MR = $40. the firm's operating expenses are typical of the 100 firms in the local market and can be expressed by the following total and marginal cost functions TC = $5625 + $25Q + $0.01 Q2 A. Calculate the firm's profit-maximizing output level. B. Calculate the firm's economic profits at this activity level.

Q5. Company X, works in perfectly competitive market. where the average $40 price equals marginal revenue, P = MR = $40. the firm's operating expenses are typical of the 100 firms in the local market and can be expressed by the following total and marginal cost functions TC = $5625 + $25Q + $0.01 Q2 A. Calculate the firm's profit-maximizing output level. B. Calculate the firm's economic profits at this activity level.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 6SQ

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