× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Llanis Llanis
wrote...
Posts: 626
Rep: 0 0
6 years ago
Suppose a firm has the following total cost function TC = 100 +  . If price equals $20, what is the firm's output decision? What are its short-run profits?
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 44 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
MC = 4q. To maximize profit, set 20 = 4q, or q = 5. Profit = TR - TC = (20 * 5) - (100 + 50) = -50. Since FC = 100, the firm will produce 5 units and operate at a loss of 50 rather than shutting down and incurring a loss of 100.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1251 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 5742
  
 35
  
 375
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145
Previous poll results: Which 'study break' activity do you find most distracting?