Question

The cost function for a firm is given by TC = 500 + Q2. The firm sells output in a
perfectly competitive market and other firms in the industry sell at a price of $100.

a) What price should the manger of this firm put on its product?

b) What level of output should be produced to maximize profits?

c) How much profit will be earned?

Related Questions

Consider the problem of a firm that needs to decide how much output, denoted by x, to sell. The m... 1. A firm produces a product in a competitive industry and has a short-run total cost function C(q)... 1. Suppose that the firm operates in a perfectly competitive market. The market price of his product...