Suppose that the firm operates in a perfectly competitive market. The market price of his product is$10. The firm estimates its cost of production with the following cost function: TC=10q-4q2+q3 A. What level of out put should the firm produce to maximize its profit? B. Determine the level of profit at equilibrium. C. What minimum price is required by the firm to stay in the market?

Survey Of Economics
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ISBN:9781337111522
Author:Tucker, Irvin B.
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Chapter7: Perefect Competition
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Suppose that the firm operates in a perfectly competitive market. The market price of his

product is$10. The firm estimates its cost of production with the following cost function:

TC=10q-4q2+q3

A. What level of out put should the firm produce to maximize its profit?

B. Determine the level of profit at equilibrium.

C. What minimum price is required by the firm to stay in the market?

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