A firm can produce any quantity of good X with the following cost structure: TC = 450,000
Question:
A) The industry demand for good X is Q = 100,000 - 500P. At the profit-maximizing output level, calculate the firm's ATC of production.
B) Suppose the profit-maximizing output level you calculated to answer part A is split evenly between two firms, each with the cost structure given by TC = 450,000 + 20Q. What is the ATC of production in this two-firm industry?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
A Q 100000 500P The inverse demand function is P 200 0002Q TR PxQ 200Q 0002Q2 ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
2+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
