Question
8. A firm produces a product in a competitive industry and has a total cost function of: TC= 50 +4q + 2q 2 At the
8. A firm produces a product in a competitive industry and has a total cost function of:
TC= 50 +4q + 2q2 At the given market price of $20, the firm is producing 5 units of output.
a) Is the firm maximizing profits? Explain carefully.
b) What quantity of output should the firm produce in the long-run?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Agricultural Economics
Authors: Evan Drummond, John Goodwin
3rd edition
136071929, 978-0136071921
