11. Problems and Applications Q1 Suppose that each firm in a competitive industry has the following costs: TC = 50 + →q² Total Cost: Marginal Cost: MC = q where is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 120 – P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50 + 9 1/2

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11. Problems and Applications Q11
Suppose that each firm in a competitive industry has the following costs:
Total Cost:
TC = 50 + q?
Marginal Cost: MC = q
where q is an individual firm's quantity produced.
The market demand curve for this product is:
Demand Qp
= 120 – P
where P is the price and Q is the total quantity of the good.
Each firm's fixed cost is $
What is each firm's variable cost?
50 + 9
Transcribed Image Text:11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 + q? Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 120 – P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50 + 9
Which of the following represents the equation for each firm's average total cost?
50 + 9
50
Complete the following table by computing the marginal cost and average total cost for q from 5 to 15.
Marginal Cost
Average Total Cost
(Units)
(Dollars)
(Dollars)
7
8.
9
10
11
12
13
14
15
The average total cost is at its minimum when the quantity each firm produces (q) equals
+
Transcribed Image Text:Which of the following represents the equation for each firm's average total cost? 50 + 9 50 Complete the following table by computing the marginal cost and average total cost for q from 5 to 15. Marginal Cost Average Total Cost (Units) (Dollars) (Dollars) 7 8. 9 10 11 12 13 14 15 The average total cost is at its minimum when the quantity each firm produces (q) equals +
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