Homework Answers
Profit maximizing condition is P=MC.
P= $50 (Given)
Firm A would produce 3 widget because for Q=3 , P=MC.
Firm B would produce 2 units because for Q=2 , P>MC and for Q=3 , P<MC .
Firm C would produce 4 units , because for Q-4 units , P=MC.
So, in total widgets production = (3+2+4) =9 widgets.
Producer surplus is determined by P-MC.
Producer surplus earn by firm A = $(50-20)+ (50-30) +(50-50)= $ 50
Producer surplus earn by firm B = $(50-25)+ (50-35)= $40
Producer surplus earn by firm C = $(50-15)+ (50-30)+ (50-35)+ (50-50)= $70
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producers.
What is the lowest possible social variable cost for producing 5
widgets?
MC (1 point) The following chart shows the marginal cost curves of two widget producers. The Hall Company The Oates Company Q MC 1 $ 61 $12 2 $ 92 $18 $18 $24 $27 $30 On the market supply curve, what quantity goes with the price $27? What is the lowest possible social variable cost for...
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can someone help me with this question please
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