What is the value of the marginal revenue

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You are the manager of a firm in a perfectly competitive market. Assume that you are currently operating in the short run and the market equilibrium price is $75. Your firm's total cost of production is C(q) = 25,000 + 5q + (1/20)q2 where q denotes the total amount of output produced by your firm. Use this information to answer the following questions:

a. What is the value of the marginal revenue for the 500th unit of output (i.e. q = 500) that your firm sells?

b. What is the value of the marginal cost for the 500th unit of output (i.e. q = 500) that your firm produces?

c. In order to maximize profit, how much output should your firm produce? What is the value of your firm's profit?

d. How would you expect this market to change in order to reach the long-run equilibrium?

Reference no: EM133465978

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