A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q) =

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A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q) = 20 + 10Q + Q². The market price is $10.

a) What is the profit-maximizing quantity?

b) What are the maximum profits?

c) Find the short-run supply curve if all fixed costs are sunk.

d) Find the short-run supply curve if all fixed costs are non-sunk.

e) Suppose there are 100 identical firms in this market. What is the market supply curve if all fixed costs are sunk?

f) Write down a market demand curve that is consistent with this equilibrium.

Related Book For answer-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

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Posted Date: Feb 23, 2024 01:20 AM

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A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q) =

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a To find the profitmaximizing quantity we need to determine where marginal cost MC equals marginal revenue MR In a perfectly competitive market the f... View the full answer

Intermediate Microeconomics and Its Application

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