FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Suppose a firm is in a competitive market and the market price of the output is p = 1. Assume that the firm's cost

image text in transcribed

image text in transcribed
6. Suppose a firm is in a competitive market and the market price of the output is p = 1. Assume that the firm's cost function is c(q) = =q2. Explain why q = 2 cannot be a profit maximizing level of output. Do the same for q = 0.5. What is the profit maximizing quantity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics For Contemporary Decision Making

Business Statistics For Contemporary Decision Making

Authors: Ken Black

9th edition

978-1-119-3208, 9781119334781, 1119334780, 1119320895, 978-1119320890

More Books

Students also viewed these Economics questions

Question

★★★★★
Refer to Olde West Products in E12- 27A. Compute the IRR of each project and use this information to identify the better investment. In E12- 27A Project A costs $ 290,000 and offers seven annual net...

Answered: 1 week ago

Question

★★★★★
What is a stock split? Why do companies sometimes split their stock?

Answered: 1 week ago

Question

★★★★★
The distribution function of X is given by F(x) = 0, x Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following pre-closing trial balance at...

Answered: 1 week ago

Question

★★★★★
Management asked their network administrator to suggest an appropriate backup medium for their backup plan that best suits their organizations need. Which of the following factors will the...

Answered: 1 week ago

Question

★★★★★
The Auditing Standards Board's guidance on matters such as the purpose of an audit, the premise of an audit, and auditor personal responsibilities is included in:n n a. The professional...

Answered: 1 week ago

Question

★★★★★
Add Assigned Service Industry Recent labor productivity, unit labor costs, and related data Employment (thousands) Percent change: INSERT YEARS Labor productivity Unit labor costs Output Hours worked...

Answered: 1 week ago

Question

★★★★★
c). You want to write a simple model to understand some of the determinants of the likelihood of getting unemployed during an upcoming economic recession. Assume you have the following information...

Answered: 1 week ago

Question

★★★★★
In today's increasingly VUCA (Volatile, Uncertain, Complex and Ambiguous) world, it is important for firms to be able to quickly and accurately adapt to shifts in the marketplace or changes in...

Answered: 1 week ago

Question

★★★★★
Concept of Value Chain. The phrase "value chain" refers to all of the commercial activities and procedures that go into making a product or providing a service. A value chain can include all stages...

Answered: 1 week ago

Question

★★★★★
Calculate the following expressing all answers in lowest terms: 1. 777 = 2. 3 3-3 3. Find the first derivative: f(x) = 4x + 7 4. Find the first derivative: h(x) = 2 5. Find the first derivative: g(x)...

Answered: 1 week ago

Question

★★★★★
How should you negotiate increases in compensation and benefits following a job offer? As a request As a demand You should assume their initial offer is final. By asking to speak with hiring...

Answered: 1 week ago

Question

★★★★★
5. List three of what you would call your core values. For each of these core values, answer the following questions. a. What is the purpose of this value in your life? b. How does this value affect...

Answered: 1 week ago

Question

★★★★★
3. What values would you say are your core values?

Answered: 1 week ago

Question

★★★★★
12. Think of a situation where you felt particularly powerless. It must be a real event that you remember relatively well. Try to think back. What was it you imagined just before you felt powerless...

Answered: 1 week ago

Previous Question Next Question