Question
Q1.[3 marks] You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost
Q1.[3 marks] You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2.
a.What is the profit-maximizing output for your firm?
b.What are your firm's maximum profits?
Q2. [2 marks]Suppose the market supply curve is p = 5 + Q. At a price of 11, what is producer surplus?
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
