Question
You manage a firm producing in a perfectly competitive industry. The firm's total cost function is given by TC = 20 + 3Q + Q
You manage a firm producing in a perfectly competitive industry. The firm's total cost function is given by TC = 20 + 3Q + Q2 meaning that it has a marginal cost of MC = 3 + 2Q. If the market price is constant at $15, how much should you produce to maximize profit and how much profit will you make?
Output: ____________ units
Profit: $___________
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
