How much output the firm produce to maximize profit, Microeconomics

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How much output the firm produce to maximize profit

Suppose in the short run a perfectly competitive firm has variable cost = 6q2, and MC = 12q where q is the quantity of output produced. Also, the firm has fixed cost F = 6144.

a) If the market price of the product is $336, how much output should the firm produce in order to maximize profit?

b) How much profit will this firm make?

c) Given your answer to b), what will happen to the market price as we move from the short run to the long run?

d) What is the break-even price for this market?

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Microeconomics: How much output the firm produce to maximize profit

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Microeconomics: How much output the firm produce to maximize profit

Reference No:- TGS038538

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Adjusted basis in the home

Q : How technology affect the marginal product for labour

Q : Cash and annual payment options

Q : Addition of debt to capital structure

Q : How much output the firm produce to maximize profit

Q : Explain life expectancy-inflation-interest rates and risk

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Ask an Expert for Answer!!

Microeconomics: How much output the firm produce to maximize profit

Reference No:- TGS038538

Recent Questions Asked Microeconomics

Q : Adjusted basis in the home

Q : How technology affect the marginal product for labour

Q : Cash and annual payment options

Q : Addition of debt to capital structure

Q : How much output the firm produce to maximize profit

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Q : Problem on amount of the unrecognized gain

Q : Derive the demand equation for the dominant oligopolist

Q : Taxable income for the present taxable year

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