Homework answers / question archive / A equilibrium market price for a good is $100 per? unit, and a firm has a marginal cost curve given? by: MC=25+0

A equilibrium market price for a good is $100 per? unit, and a firm has a marginal cost curve given? by: MC=25+0

Economics

Share With

A equilibrium market price for a good is $100 per? unit, and a firm has a marginal cost curve given? by: MC=25+0.5q.

1. Assuming the firm operating in Perfect Competition, what is ?the firm's profit-maximizing price? Make sure to show your work and explain how your arrived at your conclusion.
2. Assuming the firm operating in Perfect Competition, what is the firm’s profit-maximizing quantity? Make sure to show your work and explain how your arrived at your conclusion.

3. Assuming the firm operated in an Oligopoly and priced their product below the answer to part a, what are the implications of that move? Please explain.