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Economics

Suppose the following cost functions of a perfectly competitive company?

Marginal Cost= MC = 6q + 20

Average Total coat = ATC = 20 +3q + 10/q

Assume the price is P=$28

A) Determine the profit maximizing output for Q

B) Compute the firms profit or loss, should firm shut down if loss?

C) Compute producer surplus, how much is the difference between the producer surplus and profit in this case?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9309642

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