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lost in econ
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If any one can offer advise/help on how to do this problem it would be very much appreciated!!! - Thanks.
Company ABC supplies household wiring supplies, they are in a perfectly competitive industry. Total marginal cost relations for Company ABC are:
TC = $3,600 + $5Q + $0.01Q2
MC = ΔTC/ΔQ = $5 + $0.02Q
Q is hundreds of feet of wire produced
A. calculate the optimal output and profits if prices are stable at $20 and $25
B. If company ABC is typical of firms in the industry, calculate the firm’s equilibrium output, price, and profit levels.
Company ABC supplies household wiring supplies, they are in a perfectly competitive industry. Total marginal cost relations for Company ABC are:
TC = $3,600 + $5Q + $0.01Q2
MC = ΔTC/ΔQ = $5 + $0.02Q
Q is hundreds of feet of wire produced
A. calculate the optimal output and profits if prices are stable at $20 and $25
B. If company ABC is typical of firms in the industry, calculate the firm’s equilibrium output, price, and profit levels.