A firm selling in a perfectly competitive market has estimated total cost as TC = 3,645...

Question

Question

A firm selling in a perfectly competitive market has estimated total cost as TC = 3,645 + 7Q + 0.2Q².

Currently the market price is $67 per unit. Find the firm’s optimal output:
If Price = 67, what is the perfect competitor’s economic profit?
If Market demand is Q_x = 4,085 - 5P_x, the number of firms currently operating in the market is:
What is your expectation for the future on this market? You must motivate your answer.
Determine the firm’s long-run profit-maximizing output and price.
If Market demand is Q_x = 4,085 - 5P_x, determine the number of firms that will operate in this market in the long-run:

business economics

Answer 1

Answer #1

Answer 2

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