4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its product for $5. a) Assume that the firmd marginal cost is given by MC = 0:2q + 3. What is the level of output q that maximizes profit? b) Assume the total cost is given by T C = 0.1q^2 + 3q + 10. Calculate the firms profit. c) Graph these results and label firms supply curve.

4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its product for $5. a) Assume that the firmd marginal cost is given by MC = 0:2q + 3. What is the level of output q that maximizes profit? b) Assume the total cost is given by T C = 0.1q^2 + 3q + 10. Calculate the firms profit. c) Graph these results and label firms supply curve.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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