--%>
Assignment Help - homework help

Problem based on level of output

Assume that a competitive firm's marginal cost of generating output q is specified by MC(q) = 3 + 2q. Suppose that the market price of the firm's product is $9: What level of output will the firm generates?
To maximize profits, the firm have to set marginal revenue equivalent to marginal cost. Given the fact that this firm is operating in a competitive market, the market price it faces is equivalent to marginal revenue. Therefore, the firm have to set the market price equivalent to marginal cost to maximize its profits:
                                                                                                   9 = 3 + 2q, or q = 3.

   Related Questions in Biology

  • Q : Write an illustration for hapten

    Write an illustration for hapten molecule.

    		•
  • Q : Human visual system where photoreceptor

    Name the part of the human visual system, where the receptors which sense light, that is, the photoreceptor cells, are situated? How do such cells work?

    		•
  • Q : Describe Fourth Generation Language or

    Fourth Generation Language: The fourth generation (or programming) language (that is, 4GL) is a grouping of programming languages which attempt to get nearer than 3GLs to human language, form of conceptualization and thinking.

    Q : Route of the ingested food Describe the

    Describe the route of the ingested food from swallowing till the duodenum? Answer: Until reaching the duodenum, the food enters the mouth, passes through the pharynx

    		•
  • Q : Procedure measures in outcomes research

    What are procedure measures in outcomes research and why are they sometimes employed in place of real outcomes data?

    		•
  • Q : How calcium ions participate in the

    How calcium ions participate in the muscle contraction? Why do both muscle contraction and muscle relaxation use energy?

    		•
  • Q : What is acquired immunity What is

    What is acquired immunity?

    		•
  • Q : How nervous system acquire information

    How does the nervous system acquire information regarding the external atmosphere, the tissues and organs?

    		•
  • Q : Main proteins that constitute the

    What are the main proteins that constitute the sarcomere? What is the function of those molecules in the muscle cells?

    		•
  • Q : Ethnicity-Charachetstic of

    The term ethnicity refers to the ethnic composition of a group or organization. Census statistics indicate that between 2000 and 2050 not only will the U.S. population increase from 281 to 392 million, but the racial mix will change dramatically. These changes in the racial mix of the overall pop

    		•