Sen Brothers Manufacturing is currently earning economic profit. However, the market for the firm's product is perfectly competitive, so the economic profit is not expected to persist in the long run. Sen's total and marginal cost functions are given by 

  

a. At what output rate will average costs be a minimum? 

b. If the cost curves for all other firms in the market are the same as Sen's, determine the long-run equilibrium price. 

Transcribed Image Text:

TC-500Q-200Q²+Q³ and MC-500-40Q+3Q² TC-500Q-200Q²+Q³ and MC-500-40Q+3Q²

Answer rating: 100% (QA)

Disclaimer The There is an error in the TC fonction Q TC function should be TC 500 Q20Q ... View the full answer