Help-Econ

Okay, this is due Tuesday. I'm woking on it but if anyone can help that would be great!
Suppose firm A opeates in a perfectly competitive market. The price that currently prevails in the market is $1,000. Firm A's marginal cost is 20Q, where Q is output. Thus, as output increases, marginal cost will increase.
a) In general, what is a perfectly competitve firm's profit maximizing condition.
I believe this is MR=MC

b) Using the condition in part a, calculate firm A's profit-maximizing level of output.

c) For the output calculated in part b, assume the average total cost is $900. Calculate firm A's economic profit or loss.

Thanks for your help!


Your are correct, set MR=MC, solve for Q (simple algebra). Note, MR=P, and Total revenue=P*Q.


yes


yes


Thanks! So for part c I came up with a profit of $5,000. Is that correct?

  1. 👍 0
  2. 👎 0
  3. 👁 61
asked by Trisha

Respond to this Question

First Name

Your Response

Similar Questions

  1. English

    1.What is the correct way to punctuate the end of this sentence? Did the baseball player say, “I can do the splits” Did the baseball player say, “I can do the splits?” Did the baseball player say, “I can do the

    asked by Kim on August 17, 2017
  2. sci/275

    research due day 2 (tuesday) wk 6 sci/275 Exercise: Final Paper Research Due Day 2 (Tuesday) Please post in your Individual Forum · Resource: Appendix A · Review the environmental issues that are covered in this course. ·

    asked by aisha on May 27, 2010
  3. science

    a boat starts sailing on monday 10:00 at harbour A and sail 600 km due north.later it turns due east for a further 420 km to reach harbour B on tuesday at 12:00.what is the total distance travelled from A to B

    asked by thabo on October 13, 2015
  4. HCA 220

    I need help with a draft of final presentation it's due Tuesday and I need help with my final project: medical storyboard presentation. I have to create 15 to 20 slides for my powerpoint. It's about an episode of a medical drama

    asked by Markella Smith on August 16, 2009
  5. english

    i need help with my questions on the book death on ice i read it but i have bad memory and my work is due tuesday can anybody help please

    asked by kristen on May 27, 2010
  6. Math_ Intergers

    On Tuesday the temperature changes -2 degrees F perhour from noon until10:00a.m. the next morning. The temperature at noon on Tuesday is 75 degrees F. A) What is the Temperature at 4:00 p.m on Tuesday? B)What is the temperature at

    asked by DMAR on September 10, 2009
  7. HISTORY fAIR

    CAN SOMEONE HELP FIND QUOTES FOR HISTORY FAIR IS DUE TUESDAY. MY THEME IS THE CHICAGO AUTOMOBILE SHOW. ANY HELP IS APPRECIATED.

    asked by uoeihrfkwdihfhr3kohvred[hqr';elhgs.'hg]s on March 11, 2018
  8. HELP PLEASE!!!!!

    The cowboy rides into town on Tuesday and stays for three days then leaves on Tuesday how is this possible?

    asked by JACKSON on January 7, 2013
  9. MN history

    ok im woking on my project and like i don't know wat to do please HELP MEEEE We need more information in order to help you. A project on what topic? What kind of project?

    asked by mak on May 5, 2007
  10. 9th grade

    I am woking on Patterns and Inductive reasoning. I need help on numbers 14-16. Find the next two sequence. 14. Martha, Abigail, Martha, Dolley... 15. Geroge, Thomas, Abe, Alexander.... 16.Aquarius, Pisces, Aries, Taurus.... Please

    asked by Lola on August 26, 2010

More Similar Questions