Question: Please explain this question and show how you reached the final answer, I have been having some difficulty grasping the concept, thank you! Suppose a

Please explain this question and show how you reached the final answer,

I have been having some difficulty grasping the concept, thank you!

Please explain this question and show how you reached the final answer,I

Suppose a profit-maximizing firm produces output q, selling it for a price of $20 per unit regardless of what the firm does. In other words, the firm does not have any market power over its output price. In the short-run, the firm has to pay $50 dollars for its installations, regardless of how much it sells. Furthermore, its variable costs may be represented 0.1q- + 10q. (a) Write an expression for this firm's total costs, as a function of output. (b) Write an expression for this firm's marginal costs, as a function of output. (c) What amount of output should this firm produce? Do not forget to consider the possible scenario in which the firm may choose q = 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!