If the market price stays the same but the fixed costs of, Ask an Expert

Economics

Suppose that a typical firm in a perfectly competitive industry has the following total cost curve:

TC = 10 + 17 Q - 4 Q2 + Q3

a. If the market price of the product is $20, what will be the profit-maximizing level of output?

Will the firm earn a profit, and if so, how much?

b. If the market price stays the same, but the fixed costs of the firm increase so that the total cost

function becomes:

TC = 18 + 17 Q - 4 Q2 + Q3

What will be the profit-maximizing level of output?

Will the firm earn a profit, and if so, how much?

Will this firm want to stay in business in the short-run?

Will this firm want to stay in business in the long-run?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9442264

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