Solved

(Scenario: Monopolistically Competitive Firm)Use Scenario: Monopolistically Competitive Firm

Question 240

Multiple Choice

(Scenario: Monopolistically Competitive Firm) Use Scenario: Monopolistically Competitive Firm.Given the information in the scenario,what is the fixed cost for this firm? Scenario: Monopolistically Competitive Firm
For a monopolistically competitive firm,the demand curve is given by Q = 160 - P,and the firm's cost functions are: MC = 20 + 2Q and TC = 20Q + Q2 + 20.


A) There is none since this is the long run.
B) Fixed costs equal $160.
C) Fixed costs equal $20.
D) Fixed costs equal $180.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents