A perfectly competitive firm faces the following monthly costs and price.
TC = 5,625 + 5Q + 0.01Q2
ATC = 5 + + 0.01Q
MC = 5 + 0.02Q
P = 20.
a. What is the fixed cost of this firm?
b. What is the optimal output of this firm?
c. What is the economic profit or loss of this firm?
d. If there are 100 firms producing exactly the same amount like this firm, what will be the total monthly industry output?© BrainMass Inc. brainmass.com October 10, 2019, 2:47 am ad1c9bdddf
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Clarification on part c:
c. What is the economic profit or loss of this firm? ...
The expert examines the costs and prices in a perfectly competitive firm are assessed.