A competitive firm producing a standardized product (Q) with the following marginal cost characteristic:
MC = $15 + 0.002Q.
Find supply (output) of this firm when price = $9 and when price = $19.© BrainMass Inc. brainmass.com October 10, 2019, 7:59 am ad1c9bdddf
In a competitive market this firm is a price taker. Its marginal cost (MC) is also its supply curve. Therefore, this firm will produce according to its MC given a market ...
The solution discusses how In a perfectly competitive market, firm is a price taker and finds the supply of the firm when price is set at a certain point.