MLA Document2 - Word Michael Norton Insert Draw Design Layout References Mailing

Question

MLA Document2 - Word Michael Norton Insert Draw Design Layout References Mailings Review View Add-ins Tell me what you want to do Share- File Home Find Calibri (Body) AaBbCcDc AaBbCcDc AaBbc 1 Normal 1No Spac... Heading 1 ac Replace Paste Select Clipboard Font Paragraph Styles Editing There is a firm facing a Total cost C = 70-25q + 392 The market demand is Q300 13P and market supply is Q Find the profit of the firm? Assume that the firm is in a competitive market 1) 200+7P. Page 1 of 1 36words 1:47 PM 11/2/2017

Explanation / Answer

Answer
The market is in equilibrium at demand equal supply and that price the firm take
equating Qd=Qs
300-13P=200+7P
20P=100
P=5
Q=300-13*5
=235
market quantity is 235
The firm produce at MC=P
MC=dC/dQ=-25+6q
equating MC=P
-25+6q=5
q=30/6=5 units
Profit=TR-TC
TR=P*Q=5*5=25
TC=70-25*5+3*5^2
=20
Profit=25-20=5
The profit is $5

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