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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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can u please solve this excercise for me? thank you
![Exercise 3:
A perfect competition firm has a demand equaltion of P=8 ($) and total
cost equation of TC= Q²+ 2Q+ 4 ($)
1. Identify TR and MR equation?
2. Identify MC, VC, AVC, AFC, ATC equation?
3. What is optimal output level (Q*) that gives the firm profit
maximization? What is the maximum profit ?
4. What is break even price and break even quantity?
5. If market price decrease to P= 4$, should the firm continue the
production? Why?](https://content.bartleby.com/qna-images/question/886efa02-2a59-4b69-a066-6641099c44fa/14f6a924-234a-40aa-a89e-d9d73626a822/c7eo3z_thumbnail.png)
Transcribed Image Text:Exercise 3:
A perfect competition firm has a demand equaltion of P=8 ($) and total
cost equation of TC= Q²+ 2Q+ 4 ($)
1. Identify TR and MR equation?
2. Identify MC, VC, AVC, AFC, ATC equation?
3. What is optimal output level (Q*) that gives the firm profit
maximization? What is the maximum profit ?
4. What is break even price and break even quantity?
5. If market price decrease to P= 4$, should the firm continue the
production? Why?
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