Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 2CACQ
(A)
To determine
The output that the firm produce in the short run.
(B)
To determine
The price that firm charge in the short run.
(C)
To determine
The firm's short run profits.
(D)
To determine
The adjustments be anticipated in the long run.
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A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as C(Q) = 70 + 14Q + 2Q2. Thus, the marginal costs are MC(Q) = 14 + 4Q. How much output should the firm produce in the short run?
A firm sells its product in a perfect competitive market where other firms charges a price of $90 per units. the firms total cost are C(Q)=50+10Q+20Q^2
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Chapter 8 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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