The market demand for a type of good has been estimated as: P= 40 - 0.25Q, where Pis price ($) and Q is rate of sales per month. The long run market supply is expressed as: P 10.0 + 0.05Q. %3D There is a firm operating in this market that is characterized by following long run marginal cost: MC = - 20.0 + 5.0q What would be the return to firm specific advantage for this firm? O. 66.24 O. 44.15 O. 82.5 O. 33.72 O. 14.75 O. 54.25 O. 62.17

The market demand for a type of good has been estimated as: P= 40 - 0.25Q, where Pis price ($) and Q is rate of sales per month. The long run market supply is expressed as: P 10.0 + 0.05Q. %3D There is a firm operating in this market that is characterized by following long run marginal cost: MC = - 20.0 + 5.0q What would be the return to firm specific advantage for this firm? O. 66.24 O. 44.15 O. 82.5 O. 33.72 O. 14.75 O. 54.25 O. 62.17

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

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 3MC

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