Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (f)...

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Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (f)...

Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50.

(f) If fixed costs increase from 100 to 500, what happens to the profit-maximizing level of output, TR, TC, and π?

(g) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?

business economics

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Answer 1

Answer #1

) fixed cost does not affect me & so does not affect profit maximusing decisions. Profit maximising level of output & TR rema

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Answer 2

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Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2,...

The market price is p=50 3. Consider a competitive firm with total costs given by TC(q)...