Consider a competitive market with 50 identical firms.Suppose the market demand is given by the equation Q^D = 200 - 10P and the market supply is given by the equation Q^S = 10P.In addition,suppose the following table shows the marginal cost of production for various levels of output for firms in this market.

How many units should a firm in this market produce to maximize profit?

Question

Consider a competitive market with 50 identical firms.Suppose the market demand is given by the equation Q^D = 200 - 10P and the market supply is given by the equation Q^S = 10P.In addition,suppose the following table shows the marginal cost of production for various levels of output for firms in this market.

Consider a competitive market with 50 identical firms.Suppose the market demand is given by the equation Q<sup>D</sup> = 200 - 10P and the market supply is given by the equation Q<sup>S</sup> = 10P.In addition,suppose the following table shows the marginal cost of production for various levels of output for firms in this market. How many units should a firm in this market produce to maximize profit? A) 1 unit B) 2 units C) 3 units D) 4 units

How many units should a firm in this market produce to maximize profit?

Quizplus · Accepted Answer

The Answer of Consider a competitive market with 50 identical firms.Suppose the market demand is given by the equation Q^D = 200 - 10P and the market supply is given by the equation Q^S = 10P.In addition,suppose the following table shows the marginal cost of production for various levels of output for firms in this market. How many units should a firm in this market produce to maximize profit?

Consider a Competitive Market with 50 Identical Firms