Question
A perfectly competitive firm's total cost and marginal cost functions are: TC = 4,500 + 5Q2 MC = 10Q Assume that the Market price =
A perfectly competitive firm's total cost and marginal cost functions are:
TC = 4,500 + 5Q2
MC = 10Q
Assume that the Market price = $500
Marginal revenue (MR) is also $500 at all output levels.
The firm plans to produce 40 units of output
What would profits be for the firm at the planned output level?
| a. | $6000 | |
| b. | $7500 | |
| c. | $11,000 | |
| d. | $1,500 |
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Essentials Of Advanced Financial Accounting
Authors: Richard Baker
1st Edition
0078025648, 9780078025648
