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Perfectly competitive market-marginal profit

Problem 1. Use the following to demonstrate why a firm producing at the output level where MR=MC will also be able to maximixe its total profit. (ie be at the point where marginal profit is equal to zero)

P = 170 - 5Q
TC + 40 = 50Q + 5Q² please show the steps

Problem 2. In a perfectly competitive market a firm had to be either "good or lucky" explain what is meant by this statement Illustrate with the use of a diagram.

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Perfectly competitive market-marginal profit

Reference No:- TGS01746324

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Role of supply and demand in decision making

Q : Equilibrium output in the domestic economy

Q : Productive efficiency and allocative efficiency

Q : Standard methods used in macroeconomics

Q : Perfectly competitive market-marginal profit

Q : Calculate the equilibrium price and quantity

Q : Taxes and government spending

Q : Duopoly decisions to produce

Q : Nash equilibrium or multiple equilibrium

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Perfectly competitive market-marginal profit

Reference No:- TGS01746324

Recent Questions Asked Macroeconomics

Q : Role of supply and demand in decision making

Q : Equilibrium output in the domestic economy

Q : Productive efficiency and allocative efficiency

Q : Standard methods used in macroeconomics

Q : Perfectly competitive market-marginal profit

Q : Calculate the equilibrium price and quantity

Q : Taxes and government spending

Q : Duopoly decisions to produce

Q : Nash equilibrium or multiple equilibrium

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