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Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price (P) of the firm's product is $21. What level of output (q) will the firm produce? The firm will produce 9 units of output. (Enter your response rounded to two decimal places.) What is the rm's producer surplus? Producer surplus (PS) is $ 81.00'. (Enter your response rounded to two decimal places.) Suppose that the average variable cost of the firm (AVC) is given by AVC(q)= 3 +1q. Suppose that the firm's xed costs (F0) are known to be $10. Will the rm be earning a positive, negative, or zero profit in the short run? In the short run, the firm's profit will be |:|
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