An economist estimated that the cost function of a single-product firm in a perfectly competitive market is C(Q) = 4.7 + 10 + 1.20² If the market price was $67.8, what price should the firm charge in the short run?

An economist estimated that the cost function of a single-product firm in a perfectly competitive market is C(Q) = 4.7 + 10 + 1.20² If the market price was $67.8, what price should the firm charge in the short run?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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An economist estimated that the cost function of a single-product firm in a perfectly
competitive market is
C(Q) = 4.7+ 10 + 1.20²
If the market price was $67.8, what price should the firm charge in the short run?
Answer: 30.625

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