firms in compeitive markets
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?
https://brainmass.com/economics/perfect-competition/firms-compeitive-markets-319461
Solution Preview
For perfect competition, the profit max. rule is p=mc
1) p = 30 = 2q = MC, ...
Solution Summary
The firms in competitive markets are examined. The competitive equilibrium price in the industry are given.
$2.19