A company that works in a perfectly competitive market has a total cost function: TC = Q3 - 52.5Q2 + 1,050Q + 6,750 The supply and demand functions in that market are: QS = 2P -704 Qd = 5,260 - 5P a) How much should you produce to maximize your profits? b) Find what benefit you will get c) Represent graphically the market equilibrium and that of the company
A company that works in a perfectly competitive market has a total cost function: TC = Q3 - 52.5Q2 + 1,050Q + 6,750 The supply and demand functions in that market are: QS = 2P -704 Qd = 5,260 - 5P a) How much should you produce to maximize your profits? b) Find what benefit you will get c) Represent graphically the market equilibrium and that of the company
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 4SCQ: Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the...
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2.- A company that works in a
TC = Q3 - 52.5Q2 + 1,050Q + 6,750
The supply and demand functions in that market are:
QS = 2P -704
Qd = 5,260 - 5P
a) How much should you produce to maximize your profits?
b) Find what benefit you will get
c) Represent graphically the
d) Calculate the market
e) Validate the utilities by calculating them as the area of the rectangle on the graph.
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