Question
Please explain your work and answer in detail. 1. Suppose the firm is a price taker. The market price is $300 and its marginal cost
Please explain your work and answer in detail.
1. Suppose the firm is a price taker. The market price is $300 and its marginal cost 2Q. The firm's Total Cost function is Q2.
a.Find the firm's profit.
b.Suppose the market price rises to $400. MC=$2Q. Find the firm's profit.
c.Suppose the market price is $300, MC=2Q, and the firm suffers a recurring legal of $10,000. Find the firm's profit.
d.Suppose the market price is $300, and MC=4Q and the firm's TC function is 2Q2Find the firm's profit.
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
