Question
Question 3 (6 Marks) a) Suppose a firm has the following total cost function TC = 100 + 2q 2 . If price equals $20,
Question 3 (6 Marks)
a)Suppose a firm has the following total cost function TC = 100 + 2q2. If price equals $20, what is the firm's output decision? What are its short-run profits?(3marks)
b)Suppose a monopolist has TC = 100 + 10Q + 2 Q2, and the demand curve it faces is p =
90 - 2Q. What will be the price, quantity, and profit for this firm?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Capitalist Political Economy Thinkers And Theories
Authors: Heather Whiteside
1st Edition
0429888031, 9780429888038
