A competitive firm faces the following market price: P=200. Variable costs areCQ)=Q^2. The firm also pays $17000 in costs that do not depend on production(even if q=0). Hint - marginal cost is MC(Q)=2*QNOTE - KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED INMULTIPLE QUESTIONSWhat is the optimal quantity this firm should produce?20010050

Optimal Quantity is the Quantity that a firm produces at the point where Profit is maximized, this…

Answered: CIQ=Q^2. The firm also pays (even if…

CIQ=Q^2. The firm also pays (even if q=0). Hint - marginal NOTE - KEEP YOUR CALCUL MULTIPLE QUESTIONS What is the optimal quantity O 200 O 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A competitive firm faces the following market price: P=200. Variable costs are
CQ)=Q^2. The firm also pays $17000 in costs that do not depend on production
(even if q=0). Hint - marginal cost is MC(Q)=2*Q
NOTE - KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED IN
MULTIPLE QUESTIONS
What is the optimal quantity this firm should produce?
200
100
50

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