Consider an industry with two firms producing similar products. Each firm's total cost (in dollars)is given below. Mega Corp: TC = 5,000 + 100Q
Big Inc: TC = 4,000 + 200Q
If each firm produces 10 units, Mega Corp's total cost will be ________, and Big Inc's total cost will be ________.
A)$6,000; $6,000
B)$5,000; $4,000
C)$5,100; $4,200
D)$15,000; $14,200

Question

Quizplus · Accepted Answer

For Mega Corp, total cost is $5,000 + (10 × $100)= $6,000, and for Big Inc, total cost is $4,000 + (10 × $200)= $6,000.

Consider an Industry with Two Firms Producing Similar Products