The most-profitable level of output of the firm at price OB.

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Chapter 8, Problem 4SQ

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The most-profitable level of output of the firm at price OB.

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4. The cost function for a firm facing perfect competition isC(q)=1000+25q-0.5q²+0.01q^3What is the minimum price at which this firm will produce q> 0 in the short run? Show your work.

A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 At this output of Q = 100, calculate: total revenue (TR), total cost (TC), variable cost (VC), and fixed cost (FC). Show your work (formulas and calculations)

Don't use chatgpt, I will 5 upvotes Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn ◻ positive economic profits. negative economic profits but will try to remain open. zero economic profits. negative economic profits and will shut down.