A firm in competitive market has demand and total cost functions as follows: P-2600-100 TC-2.5Q+1000+ 5000 a. What are fixed cost (FC), variable cost (VC), average total cost (ATC) and marginal cost (MC) b. In order to maximize profits, what are price and quantity? Calculate the maximum profit

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
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A firm in competitive market has
demand and total cost functions as
follows:
P-2600-100
TC-2.5Q+1000 + 5000
a. What are fixed cost (FC), variable
cost (VC), average total cost (ATC) and
marginal cost (MC)
b. In order to maximize profits, what
are price and quantity? Calculate the
maximum profit
Transcribed Image Text:A firm in competitive market has demand and total cost functions as follows: P-2600-100 TC-2.5Q+1000 + 5000 a. What are fixed cost (FC), variable cost (VC), average total cost (ATC) and marginal cost (MC) b. In order to maximize profits, what are price and quantity? Calculate the maximum profit
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