PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q Price (P) = $9 MC → Marginal Cost q→ Quantity (b) What is a Firm's Producer Surplus assuming the following? Area of Triangle = 1/2* Base *Height (c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the Short-Run given the following? AVC(q)= 3 + q FC = $3 AVC Average Variable Cost → FC Fixed Cost
PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q Price (P) = $9 MC → Marginal Cost q→ Quantity (b) What is a Firm's Producer Surplus assuming the following? Area of Triangle = 1/2* Base *Height (c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the Short-Run given the following? AVC(q)= 3 + q FC = $3 AVC Average Variable Cost → FC Fixed Cost
Chapter24: Perfect Competition
Section: Chapter Questions
Problem 10E
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![PS4.2
(a)
What Optimal Level of Output (q*) will a Firm Produce given the
following?
MC(q) = 3 + 2q
Price (P) = $9
MC → Marginal Cost
q→ Quantity
(b) What is a Firm's Producer Surplus assuming the following?
Area of Triangle = 1/2* Base * Height
(c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the
Short-Run given the following?
AVC (q) =3+q
FC = $3
AVC → Average Variable Cost
FC Fixed Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2Fe2e48611-2680-45b2-a5ea-ea2cdcfc78ee%2F3zw6i1g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PS4.2
(a)
What Optimal Level of Output (q*) will a Firm Produce given the
following?
MC(q) = 3 + 2q
Price (P) = $9
MC → Marginal Cost
q→ Quantity
(b) What is a Firm's Producer Surplus assuming the following?
Area of Triangle = 1/2* Base * Height
(c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the
Short-Run given the following?
AVC (q) =3+q
FC = $3
AVC → Average Variable Cost
FC Fixed Cost
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