A competitive firm participates in a market where market demand & supply are given by QD=85,000-5000P Qs = 40,000 + 2500 P Find the market equilibrium price. Plot a graph of the demand curve facing the firm. Given that the marginal cost curve of the firm is given by the following: MC = 2q, calculate the profit maximizing quantity that the firm will produce. Assume that FC=0. Calculate the profit of the firm at this quantity. a. b. C.
A competitive firm participates in a market where market demand & supply are given by QD=85,000-5000P Qs = 40,000 + 2500 P Find the market equilibrium price. Plot a graph of the demand curve facing the firm. Given that the marginal cost curve of the firm is given by the following: MC = 2q, calculate the profit maximizing quantity that the firm will produce. Assume that FC=0. Calculate the profit of the firm at this quantity. a. b. C.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...
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![7.
A competitive firm participates in a market where market demand & supply are given by
QD=85,000-5000P
Qs = 40,000+ 2500 P
Find the market equilibrium price. Plot a graph of the demand curve facing the firm.
Given that the marginal cost curve of the firm is given by the following:
MC = 2q, calculate the profit maximizing quantity that the firm will produce.
Assume that FC=0. Calculate the profit of the firm at this quantity.
a.
b.
C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2395df5e-43a5-4d69-a3d4-4a05453dd531%2Fa7a51951-bbee-49e1-81dc-82c0ee857222%2Fsz2z5as_processed.png&w=3840&q=75)
Transcribed Image Text:7.
A competitive firm participates in a market where market demand & supply are given by
QD=85,000-5000P
Qs = 40,000+ 2500 P
Find the market equilibrium price. Plot a graph of the demand curve facing the firm.
Given that the marginal cost curve of the firm is given by the following:
MC = 2q, calculate the profit maximizing quantity that the firm will produce.
Assume that FC=0. Calculate the profit of the firm at this quantity.
a.
b.
C.
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