A firm in a competitive industry has a total cost function of TC = 0.2Q2 - 5Q

Question:

A firm in a competitive industry has a total cost function of TC = 0.2Q2 - 5Q + 30, whose corresponding marginal cost curve is MC = 0.4Q - 5. If the firm faces a price of 6, what quantity should it sell? What profit does the firm make at this price? Should the firm shut down?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: