Information for a prfectly competitive firm

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Reference no: EM131071219

Consider the following information for a prfectly competitive firm during a one month time period. Assume that Q = the level of output and all costs are economic costs.

  • Market price = $12.
  • Total cost = 60 + 2Q + 0.5Q2
  • Marginal cost = 3 + Q

At the profit-maximizing or loss-minimizing output level, economic profit would equal:

Hint: Solve for Q first. Remember, a firm maximizes profit producing a level of output where the last unit has a marginal revenue equal to its marginal cost.

Select one:

a. +$108

b. +$118.50

c. -$10.50

d. -$75

Reference no: EM131071219

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