Question
The market supply function is P = 10 + 2Q. The capacity level is Qc = 30. Graph the supply function and mark Qc. Given
The market supply function is P = 10 + 2Q. The capacity level is Qc = 30. Graph the supply function and mark Qc. Given this information, answer the two questions below.
(1) The market price is PM = 20. Compute Total Cost TC(20), Total Revenue TR(20), and Profit (20).
(2) The market price is PM = 90. Compute Total Cost TC(90), Total Revenue TR(90), and Profit (90).
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
