Answer to Question #315455 in Microeconomics for Jon

Question

A firm operates in a perfectly competitive market. The market price of its product is 4 br and the total cost function is given by TC = 200Q + 50, where TC is total cost and Q is level of output

What level of output should the firm produce to maximize the profit

Answer 1

in perfect competition ,profit maximization is when

P=MC

P=4

TC=200Q+50

MC=$\frac{dtc}{dq}$ 200Q+50

MC=200

Therefore

p=mc

4=200