You are given the following cost equations for a competitive firm with no fixed costs:
AC = - 48q + 25
MC = 2q
a.If the market price is $100, determine the profit-maximizing quantity produced by this firm, its average cost (AC), and its profits.
b.If there are 50 identical firms in the market, what would the market output be? Explain.

Question

You are given the following cost equations for a competitive firm with no fixed costs:
AC =  - 48q + 25
MC = 2q 
a.If the market price is $100, determine the profit-maximizing quantity produced by this firm, its average cost (AC), and its profits.
b.If there are 50 identical firms in the market, what would the market output be? Explain.

Quizplus · Accepted Answer

The Answer of You are given the following cost equations for a competitive firm with no fixed costs:
AC =  - 48q + 25
MC = 2q 
a.If the market price is $100, determine the profit-maximizing quantity produced by this firm, its average cost (AC), and its profits.
b.If there are 50 identical firms in the market, what would the market output be? Explain.

You Are Given the Following Cost Equations for a Competitive