Purchase Solution

firms in compeitive markets

Not what you're looking for?

Ask Custom Question

Suppose a firm in a perfectly competitive industry has the short run cost function tc=100 + q2 with the corresponding marginal cost curve of mc=2q
1)if the market price is $30 what is the profit maximizing output level for each firm? What is the profit of the firm?
2) what would be the competitive equilibrium price in this industry?

Purchase this Solution

Solution Summary

The firms in competitive markets are examined. The competitive equilibrium price in the industry are given.

Solution Preview

For perfect competition, the profit max. rule is p=mc

1) p = 30 = 2q = MC, ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.