d) Using marginal analysis, how does a firm find its optimal output? ume the pizza market is a perfectly competitive constant cost industry, and all firms have identicalhomogenous firms). The market demand and market supply functions for this perfectly competitstry are given below.L0123456789q=TP0102030405060708090TC1002052.452803404305457209301190P = 30.5-.005QP = 1.7+.003QTFCTVC100010010520.5010.50100 14512.257.251001809.336.001002408.506.001003308.606.601004459.087.4210062010.298.86100830 11.63 10.381001090 13.2212.11ATCAVCMC10.504.603.506.009.0011.517.5021.0026.00

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Using marginal analysis, how does a firm find its optimal output?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

d) Using marginal analysis, how does a firm find its optimal output?

ume the pizza market is a perfectly competitive constant cost industry, and all firms have identical
homogenous firms). The market demand and market supply functions for this perfectly competit
stry are given below.
L
0
1
2
3
4
5
6
7
8
9
q=TP
0
10
20
30
40
50
60
70
80
90
TC
100
205
2.45
280
340
430
545
720
930
1190
P = 30.5-.005Q
P = 1.7+.003Q
TFC
TVC
100
0
100
105
20.50
10.50
100 145
12.25
7.25
100
180
9.33
6.00
100
240
8.50
6.00
100
330
8.60
6.60
100
445
9.08
7.42
100
620
10.29
8.86
100
830 11.63 10.38
100
1090 13.22
12.11
ATC
AVC
MC
10.50
4.60
3.50
6.00
9.00
11.5
17.50
21.00
26.00

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