1) The market for Commodity A operates in a perfectly competitive market and the demand curve is...
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Question:
1) The market for Commodity A operates in a perfectly competitive market and the demand curve is defined by:
P = 200 - 0.2QD
The supply curve is defined as:
P = 4 + 0.3QS
Solve for the equilibrium levels of price and quantity that the market will bear.
You are the manager of your firm and you are trying to decide how much output you will be producing. You have total fixed costs of $10 and total variable costs of:
TVC = Q + 0.5Q2
How much of the total market quantity should your firm produce to maximize its profit? How can you confirm that this level is really a maximum and not a minimum?
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