Question
A firm has demand function of P=100-Q ($) and total cost function of TC=500+ 4Q+Q 2 ($). a. Is this firm a perfect competitive firm?
A firm has demand function of P=100-Q ($) and total cost function of TC=500+ 4Q+Q2 ($).
a. Is this firm a perfect competitive firm? Why?
b. What is price and quantity to maximize total revenue ? What is that maximum total revenue ? c. What is price and optimal quantity to maximize profit? What is that maximum total profit ?
d. Asume government imposes a tax of 8 $ per unit of good sold, what is price and optimal quantity that gives the firm maximum profit? What is this maximum profit?
e. Asume government imposes a fixed tax of 100 $, what is price and optimal quantity that gives the firm maximum profit?
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
