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. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. algebra 2

    the loudness L of a sound in decibels is given L=10log10R, where R is the sound's relative intensity. if the intensity of a certain sound is tripled, by how many decibels does the sound increase? due tomorrow, tuesday, april 5th,

  2. math

    A, B, C, and D are points on a line, and the lengths of the line segments are: AB = 12, BC = 4, CD = 7, and DA = 15. Which of the following is a possible order for the points? A.A,B,C,D B. A,C,D,B C. A,D,C,B D. A,C,B,D•Math -

  3. Math

    Jason wants to use his earnings from Monday and Tuesday for online movie rentals. The movies cost $2.96 each to rent. How many movies can Jason rent? Jason sells can's to a recycling center that pays $0.40 per pound of cans.

  4. Math

    Two hoses are connected to a swimming pool. Working together, they can fill the pool in 4 hr. The larger hose, working alone, can fill the pool in 6 hr less time than the smaller one. How long would it take the smaller one, woking

  1. Physics

    6m due south,10m due east and 5m due north. Find the distance traveled and the displacement of the vector

  2. Maths

    Alexis reads 2/5 of her book on Monday then 1/2 of the remaining pages on Tuesday then 5/9 of the remaining pages on Wednesday the nthe remaining pages on Thursday plus reads 68 more pages on Tuesday then Wednednesday how many

  3. need help now

    Tom read for start fraction 7 over 8 end fraction of an hour on Monday and two-eighths of an hour on Tuesday. How much longer did he read on Monday than on Tuesday?

  4. Algebra 1

    5 green balls and 2 red balls together weigh 10 pounds, and 1 green ball and 4 red balls together weigh 7 pounds. If all red balls weigh the same amount and all green balls weigh the same, then what is the weight of 8 red and 8

  1. math

    a boy travels 15 km due north,then goes 9 km due east,then 3km due south.how far is he from his starting point

  2. English

    Read each sentence Rewrite it correctly using semicolons in place of commas to avoid confusion The assignment is Chapter 20, pages 420-425, all of Chapter 21, and Chapter 22, pages 506-515 The assignment is Chapter 20, pages

  3. math

    jorge ran 1/4 miles on monday . on tuesday he ran 3/4 miles less. how far did he run on tuesday?

  4. Math

    A stock increased in value by 7% on Wednesday and then decreased in value by 4% on Thursday. What was the net percentage increase in the value of the stock from the end of the day on Tuesday to the end of the day on Thursday?

You can view more similar questions or ask a new question.