Question #133106
determine the best level of output if a firm operates in a perfectly competitive industry where p=#8 and TC=Q3-5Q2+10Q+4
1
Expert's answer
2020-09-15T10:10:32-0400

The best level of output is at MC = P.

MC=TC(Q)=3Q210Q+10,MC = TC'(Q) = 3Q^2 - 10Q + 10,

3Q210Q+10=8,3Q^2 - 10Q + 10 = 8,

3Q210Q+2=0,3Q^2 - 10Q + 2 = 0,

Q1=(10+8.72)/6=3.12,Q1 = (10 + 8.72)/6 = 3.12,

Q2=(108.72)/6=0.21.Q2 = (10 - 8.72)/6 = 0.21.


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