Question
4- All firms in acompetitive market havethe following total cost function TC = 0.5Q 2 + 4Q + 120 The market demand and supply functions
4- All firms in acompetitive market havethe following total cost function
TC = 0.5Q2 + 4Q + 120
The market demand and supply functions are given by
Qmd = 1700 -20P Qms= -100+10P
whereQmdandQmsare in 100 units.
a) What is a typical firm's profit maximizing level of output?
b) What is the firm's profit?
c) How many firms operate in this market?
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
