Q4. A perfectly competitive firm has a marginal cost given by MC(q) 0.25q and a total cost function of TC = 2+ 0.125q?. The Total Revenue TR = 12q. What is the profit-maximizing price for this perfectly competitive firm? What is the condition to find equilibrium output? What is equilibrium output for this particular firm? Draw a diagram and shade the area of Producer's Surplus and calculate the firm's producer's surplus

Q4. A perfectly competitive firm has a marginal cost given by MC(q) 0.25q and a total cost function of TC = 2+ 0.125q?. The Total Revenue TR = 12q. What is the profit-maximizing price for this perfectly competitive firm? What is the condition to find equilibrium output? What is equilibrium output for this particular firm? Draw a diagram and shade the area of Producer's Surplus and calculate the firm's producer's surplus

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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