Question
Below is price and cost data of a perfectly competitive firm: Price = $100 TC = 50 + 2Q + 0.5q 2 MC = 2
Below is price and cost data of a perfectly competitive firm:
Price = $100
TC = 50 + 2Q + 0.5q2
MC = 2 + q
a.At what level of output (q*) will the firm maximize its profits?
b.At that level of output, q*, how much Total Revenue does the firm earn?
c.How much profit does the firm make by producing q*?
d.What is the firm's TFC?
e.What is the firm's AVC at the output level q*?
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Accounting Principles A Business Perspective Financial Accounting Chapter 1-8
Authors: James Edwards, Roger Hermanson, Bill Buxton
1st Edition
1461088186, 978-1461088189
