A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q 2 a. What output level should the firm produce to maximize profit? knowing that average revenue is $10. b. What is the firm profit at this level of output?

A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q 2 a. What output level should the firm produce to maximize profit? knowing that average revenue is $10. b. What is the firm profit at this level of output?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter8: An Introduction To Perfect Competition

Section: Chapter Questions

Problem 4QFR

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Question

A Milton company works in perfect competition market, its total cost curve in short run is
given in this function:
TC = 200 − 4Q + 0.5Q
2
a. What output level should the firm produce to maximize profit? knowing that average
revenue is $10.
b. What is the firm profit at this level of output?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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