Economics Homework Help
Stuck in a question? Need homework help? Ask your question and get your homework done!
At least 10 characters
Consider a perfectly competitive market. A competitive firm in this market has the following total cost structure:
Output Total Cost $
Suppose that the market price is 10$.
b) If the firm decides to stay in business, determine how many units will be produced and the profit of the firm.
c) Should the firm decide to stay in business or is it better for it to shut-down in the short-run? Explain why.
d) What is likely to happen to the market price and number of firms in the longrun?
e) Determine the shape of MPl, illustrate it on a diagram and explain your answer.
13 days ago
Related Answered and Verified Questions
Q335 Q335 Q335
Consider a competitive market with 50 identical firms. Suppose the market demand is given by the equation QD = 200 - 10P and the market supply is given by the equation QS = 10P. In addition, suppose the following table shows the marginal cost of production for various levels of output for firms in this market. Output Marginal Cost 0 -- 1 $5 2 $10 3 $15 4 $20 5 $25 How many units should a firm in this market produce to maximize profit?
Suggested Answers (0)
In order to post an answer you need toLogin or Sign up
In order to post an
answer you need to
Login or Sign up
In order to post an answer you
need to Login or Sign up