Market demand is given as Q_D= 250 - P.Market supply is given as Q_S= 1.5P.Each identical firm has MC = 10Q and ATC = 8Q.What is a firm's average total cost

Question

Quizplus · Accepted Answer

The average total cost (ATC) is given as 8Q. To find the ATC for a specific quantity, we need to know the quantity. However, since the question asks for the firm's ATC without specifying a quantity, we assume it is asking for the ATC function, which is 8Q. If we assume Q = 10 (as a typical firm output), then ATC = 8 * 10 = 80.

Market Demand Is Given as QD = 250 - P

Market Demand Is Given as Q_D= 250 - P