Question

A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q^2. [NOTE: MC(Q) = 10 + 4Q] a) How much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm's short run profits?

Name: a firm sells its product in a perfectly competitive market where other firms charge a price of 90 per unit the firms total costs are cq 50 10q 2q2 note a mcq 104q a how much output should th 43073
Uploaded: 2022-08-14T01:36:57-08:00
Duration: 3 min 40 s
Channel: Azat Nurmukhametov
Description: a firm sells its product in a perfectly competitive market where other firms charge a price of 90 per unit the firms total costs are cq 50 10q 2q2 note a mcq 104q a how much output should th 43073

          A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q^2. [NOTE: MC(Q) = 10 + 4Q]
a) How much output should the firm produce in the short run?
b) What price should the firm charge in the short run?
c) What are the firm's short run profits?

Added by Belen G.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Azat Nurmukhametov

08/14/2022

Step 1

Step 1:** Calculate the quantity the firm should produce in the short run by setting marginal revenue equal to marginal cost: \[MR = MC\] \[90 = 10 + 4Q\] \[Q = 20\] ** Show more…

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A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q^2. [NOTE: MC(Q) = 10 + 4Q] a) How much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm's short run profits?