Question #200035

the market price is in a perfectly competitive market is 100$. a perfectly competitive firm has a marginal cost given by MC=2+2Q. Find the profit maximizing output and revenue for this firm.


1
Expert's answer
2021-05-30T15:43:45-0400
SolutionSolution

Given that :

market price,P=$100MC=2+2Qmarket \ price,P=\$100\\ MC=2+2Q


Profit maximization requires that :P=MCP=MC

100=2+2Q2Q=98Q=982=49100=2+2Q\\ 2Q=98\\ Q=\frac{98}{2}=49

The firms revenue will be :TR=P×Q=100×49=$4,900TR=P\times Q=100\times 49=\$4,900



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