a.Suppose the total cost for various levels of output for a competitive firm are given in the table below:
Q |
TC |
0 |
10 |
1 |
12 |
2 |
15 |
3 |
19 |
4 |
24 |
5 |
30 |
6 |
37 |
7 |
46 |
8 |
55 |
9 |
65 |
If the market price is $8, how many units should the firm produce to maximize profit?
6
8
5
7
b,
A firm in a competitive market has the following cost structure:
Output |
Total Cost |
0 |
$5 |
1 |
$10 |
2 |
$12 |
3 |
$15 |
4 |
$24 |
5 |
$40 |
If the market price is $4, this firm will
shut down in the short run and exit in the long run.
produce three units in the short run and exit in the long run.
produce four units in the short run and exit in the long run.
produce two units in the short run and exit in the long run.
a.Suppose the total cost for various levels of output for a competitive firm are given in...
Suppose the total cost for various levels of output for a perfectly competitive price-taker firm are given in the table below: TC 10 12 15 19 24 30 46 65 If the market price is $8, how many units should the firm produce to maximize profńt?
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