Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q. The short-run market demand and supply are given by: Q° = 1200 - 80P and Q = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? Select one: O a. VC-$5 O b. VC=$10 OC VC-$15 O d. None of the above
Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q. The short-run market demand and supply are given by: Q° = 1200 - 80P and Q = 40P. What is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm? Select one: O a. VC-$5 O b. VC=$10 OC VC-$15 O d. None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q2. The short-run market demand and supply are given by: QP = 1200 - 80P and Q = 40P. What
is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm?
Select one:
O a. VC=$5
O b. VC=$10
Oc. VC=$15
O d. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb17ea0c1-3a0c-458e-a41c-9f061c0d767a%2F9d504e2f-16e9-49d4-bf5e-eb6f9d77e452%2Fr4g7r3c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a representative perfectly competitive firm has the following cost function: TC = 200 + 2.5Q2. The short-run market demand and supply are given by: QP = 1200 - 80P and Q = 40P. What
is the Variable Cost (VC) at the profit maximizing level of output (Q) for the firm?
Select one:
O a. VC=$5
O b. VC=$10
Oc. VC=$15
O d. None of the above
![Economics
A firm's total cost function is given by: TC = 2000 + 16400Q - 32Q2 + 0.016Q What is the minimum price the firm can accept so it does not have to shut down in the short-run?
Select one:
O a. 100
O b. 250
O c. 400
O d. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb17ea0c1-3a0c-458e-a41c-9f061c0d767a%2F9d504e2f-16e9-49d4-bf5e-eb6f9d77e452%2Fdjgke3b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
A firm's total cost function is given by: TC = 2000 + 16400Q - 32Q2 + 0.016Q What is the minimum price the firm can accept so it does not have to shut down in the short-run?
Select one:
O a. 100
O b. 250
O c. 400
O d. None of the above
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