Under perfect competition, each firm is a price taker. Suppose a single seller in the wheat market.
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Under perfect competition, each firm is a price taker. Suppose a single seller in the wheat market. The company produces and markets wheats at a Price = $38 per container. The firm's total costs are given as:
TC = 10 +2Q + 3Q2
a)Find the Firm's marginal cost? Show your steps, including graphs. Review additional resources? Hint: See the rules for differentiation
b)What is the firm's demand curve? Show it on a graph and label the axes showing P and Q
c)What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well
d)What is the firm Fixed Cost? Why? Also, use a graph to support your answer.
e) What price should the firm charge? Why?
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