Question
A perfectly competitive firm's total cost and marginal cost functions are: TC = 40 + 0.1 Q 2 - 0.2Q MC = .2Q - .2
A perfectly competitive firm's total cost and marginal cost functions are:
TC = 40 + 0.1 Q2 - 0.2Q
MC = .2Q - .2
Assume that the market price = $4.20
Marginal revenue = $4.20
The firm plans to produce 20 units of output
What would profits be for the firm at the planned output level?
| a. | $8 | |
| b. | $4.50 | |
| c. | $80 | |
| d. | $15 |
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Integrated Accounting For Windows
Authors: Dale Klooster
7th Edition
0538747978, 9780538747974
