Suppose a chemical company is in a perfectly competitive industry and has a short run total cost curve of $\mathrm { TC } = \frac { 1 } { 3 } \mathrm { q } ^ { 3 } + 5 \mathrm { q } ^ { 2 } + 10 q + 10$ and a short run marginal cost of SMC = q² + 10q + 10.At the price of 385,how much will be produced? A)0 B)3 C)5 D)15

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce where price equals marginal cost. Setting SMC = 385, we solve q^2 + 10q + 10 = 385, which simplifies to q^2 + 10q - 375 = 0. Solving this quadratic equation gives q = 15.

Suppose a Chemical Company Is in a Perfectly Competitive Industry TC=13q3+5q2+10q+10\mathrm { TC } = \frac { 1 } { 3 } \mathrm { q } ^ { 3 } + 5 \mathrm { q } ^ { 2 } + 10 q + 10TC=31​q3+5q2+10q+10

Suppose a Chemical Company Is in a Perfectly Competitive Industry $\mathrm { TC } = \frac { 1 } { 3 } \mathrm { q } ^ { 3 } + 5 \mathrm { q } ^ { 2 } + 10 q + 10$