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A perfectly competitive rm is in a perfectly competitive industry with 200 identical firms. The rm has a variable cost function VC = 10q +
A perfectly competitive rm is in a perfectly competitive industry with 200 identical firms. The rm has a variable cost function VC = 10q + q2. Fixed cost is FC = 4. Market demand is Q = 3000 - 100p, where Q is market quantity. a. Market equilibrium price is v, and market equilibrium quantity is v. b. In equilibrium, each rm makes a profit equal to v. c. The minimum price for a positive output for a single rm is v
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