Question

In market Z, the demand given as: Q = 80 - 0.025P Total cost = fixed cost + variables cost (Q) = 100+20Q a. If the firm is operating in a perfectly competitive market, determine the price and quantity output set by the firm as to maximized profit. b. Supposed, the firm is a monopoly determine the price and quantity set by the firm as to maximized the profit.

Name: in market z the demand given as q 80 0025p total cost fixed cost variables cost q 10020q a if the firm is operating in a perfectly competitive market determine the price and quantity output 78683
Uploaded: 2023-04-07T18:14:43-08:00
Duration: 3 min 9 s
Channel: Andrew Davis
Description: in market z the demand given as q 80 0025p total cost fixed cost variables cost q 10020q a if the firm is operating in a perfectly competitive market determine the price and quantity output 78683

          In market Z, the demand given as:
Q = 80 - 0.025P
Total cost = fixed cost + variables cost (Q)
= 100+20Q
a. If the firm is operating in a perfectly competitive market,
determine the price
and quantity output set by the firm as to maximized profit.
b. Supposed, the firm is a monopoly determine the price and
quantity set by the
firm as to maximized the profit.

Added by Blanca M.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Andrew Davis

04/07/2023

Step 1

In a perfectly competitive market, the firm's profit is maximized when marginal cost (MC) equals marginal revenue (MR). In this case, the firm's marginal cost is the variable cost, which is 20, and the marginal revenue is the derivative of the demand function, Show more…

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In market Z, the demand given as: Q = 80 - 0.025P Total cost = fixed cost + variables cost (Q) = 100+20Q a. If the firm is operating in a perfectly competitive market, determine the price and quantity output set by the firm as to maximized profit. b. Supposed, the firm is a monopoly determine the price and quantity set by the firm as to maximized the profit.