10. Suppose in a market that market demand is od - 100 - P and market supply is Qd = 3P. If the typical firm in the industry has STC = 200 + Q + 402 and SHC =1 + 8Q, how many units should the typical firm produce to maximize profit? a. 2 b. 3 c. 4 d. 5

10. Suppose in a market that market demand is od - 100 - P and market supply is Qd = 3P. If the typical firm in the industry has STC = 200 + Q + 402 and SHC =1 + 8Q, how many units should the typical firm produce to maximize profit? a. 2 b. 3 c. 4 d. 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

10. Suppose in a market that market demand is gd - 100 -
market supply is Qd = 3P. If the typical firm in the industry
has STC = 200 + Q + 402 and SHC =1 + 8Q, how many units
should the typical firm produce to maximize profit?
P and
a. 2
b. 3
c. 4
d. 5

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Question 12 Examine the graph below. Assume this firm is producing at its profit-maximizing output. In the long run, if prices remain as shown here, this firm will SA MC ATC 13 12 11 10 AVC 6 6 0 3 8 0 12 15 18 21 q stay in the market and make a profit have zero economic profit O exit the market shut down have losses equal to fixed costs 9 B 7
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