The perfectly competitive firm has the following cost function: Total output Total cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the product in the market is rs. 14 per unit. How much it changes its output if the price rises to rs.16 per unit?
The perfectly competitive firm has the following cost function: Total output Total cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the product in the market is rs. 14 per unit. How much it changes its output if the price rises to rs.16 per unit?
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 9P
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Question
The perfectly competitive firm has the following cost function:
Total output | Total cost |
0 | 20 |
1 | 30 |
2 | 42 |
3 | 55 |
4 | 69 |
5 | 84 |
6 | 100 |
7 | 117 |
How much will the firm produce if the price of the product in the market is rs. 14 per unit. How much it changes its output if the price rises to rs.16 per unit?
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