Asked by Athirah
The total cost faced by a firm in a perfectly competitive is given as:
TC = 600-100Q+0.5Q2
i. Find the profit maximizing level of output of the firm.
ii. Calculate the profit earned at this level.
iii. Is this short-run equilibrium for the firm? Justify your answer.
iv. Should the firm continue to operate in the short-run?
TC = 600-100Q+0.5Q2
i. Find the profit maximizing level of output of the firm.
ii. Calculate the profit earned at this level.
iii. Is this short-run equilibrium for the firm? Justify your answer.
iv. Should the firm continue to operate in the short-run?
Answers
Answered by
oobleck
unless you have some formula for revenue, you cannot determine profit.
Now, if you have a constant revenue, then maximum profit is when you have minimum cost. That is just the vertex of the TC parabola, which occurs at
Q = 100
Now, if you have a constant revenue, then maximum profit is when you have minimum cost. That is just the vertex of the TC parabola, which occurs at
Q = 100
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.