answer the following questions please Use the following to answer questions 1-2:For a particular perfectly competitive firm C(q)-10+2q+2q?. If the market price is equal to 20,what is the firm output, q*?O a. 0< q* <3O b. 3< q* <6O c. 6< q* <12O d. 12< q*<24e. None of the abovewhat is the maximum profit the firm can earn, pi* ?O a. 0< pi* <3Ob. 3< pi*<6O c. 6< pi* <18d. 18< pi*<34

Answered: For a particular perfectly competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a pure competitive market setting, each seller does not enjoy any power to regulate the prevailing price via its supply to the market. This is prominently due to its irrelevant share in market supply and production of a good which is exactly similar to that of other firms. As a consequence, it can only produce a quantity where the market price equates with its marginal cost of production.

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