Question
A perfectly competitive firm's total cost and marginal cost functions are: TC = 5 Q 2 + 4 Q - 2 MC = 10 Q
A perfectly competitive firm's total cost and marginal cost functions are:
TC = 5 Q2 + 4 Q - 2
MC = 10 Q + 4.
Assume that the market price = $24 and that the marginal revenue (MR) is also = $24 at all output levels.
The firm plans to produce 3 units of outputs
What would profits be for the firm at the planned output level?
| a. | $5 | |
| b. | $23 | |
| c. | $17 | |
| d. | $70 |
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Financial Accounting Plus
Authors: Robert Libby, Patricia Libby, Daniel Short
8th Edition
1259116832, 9781259116834
