Suppose that a firm is operating under highly competitive market conditions and that the going price for its product is P = $300.
a. If the firm's short run total cost function is:
then, what is the firm's profit maximizing output?
b. At the level of output obtained in part a, how much profit will the firm have?

Question

Suppose that a firm is operating under highly competitive market conditions and that the going price for its product is P = $300.
a. If the firm's short run total cost function is:
  then, what is the firm's profit maximizing output? 
b. At the level of output obtained in part a, how much profit will the firm have?

Quizplus · Accepted Answer

The Answer of Suppose that a firm is operating under highly competitive market conditions and that the going price for its product is P = $300.
a. If the firm's short run total cost function is:
  then, what is the firm's profit maximizing output? 
b. At the level of output obtained in part a, how much profit will the firm have?

Suppose That a Firm Is Operating Under Highly Competitive Market