A firm\'s total cost function is given as: C (Q) : 100 + 500-4Q2 + a. The firm o

Question

A firm's total cost function is given as: C (Q) : 100 + 500-4Q2 + a. The firm opera es in a competitive market and faces market price $48 per unit. Given this information, answer 29 and 30. 29. A firm will A) shut down as it cannot cover the variable costs B) stay in business as it covers variable costs C) cannot be answered because there is not enough information D) leave the industry as it is not profitable to stay in business 30. Refer to question 29, if the firm shut down, the loss of the firm A) cannot be determined B) $80 C) $100 D) None of the above 31. The feature/s of perfectly competitive markets A) Firm produce homogenous goods and is a price taker 8) There is free entry C) Long run profits is zero D) all of the able

Explanation / Answer

29 can't be answered......... Because no info on variable cost

30 can't be determined

31 All of the above

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.