Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q. The short-run market demand and supply are given by: Q° = 1200 - 80P and Q = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? Select one: O a. VC-$5 O b. VC=$10 OC VC-$15 O d. None of the above

Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q. The short-run market demand and supply are given by: Q° = 1200 - 80P and Q = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? Select one: O a. VC-$5 O b. VC=$10 OC VC-$15 O d. None of the above

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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