2.5Q². The short-run market demand and supply are given by: QD = 1200-80P and Qs = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? a. VC=$5 b. VC=$10 c. VC=$15 d. None of the above

2.5Q². The short-run market demand and supply are given by: QD = 1200-80P and Qs = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? a. VC=$5 b. VC=$10 c. VC=$15 d. None of the above

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 1MC

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Question

5. Suppose a representative perfectly competitive firm has the following cost function: TC = 200 +
2.5Q². The short-run market demand and supply are given by: QD = 1200-80P and Qs = 40P. What
is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm?
a. VC=$5
b. VC=$10
c. VC=$15
d. None of the above

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