ECON 1B03 Lecture Notes - Deadweight Loss, Nash Equilibrium, Average Variable Cost

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Bridget O' Shaughnessy

Document Summary

The firm"s economic profit is: , , , , a firm in a perfectly competitive industry is producing 50 units, its profit-maximizing quantity. Industry price is and total fixed costs and total variable costs are and. The firm"s economic profit is: , , , . To maximize profits, exotic fruit should sell ____ fruit basket(s): zero, one four, either one or four. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is . To maximize profits, exotic fruit should sell ____ fruit basket(s): zero, one four, either one or four, a perfectly competitive firm faces total costs tc = 10 + 5q2. , the firm will produce how many units of output: zero; price is too low, 50, 10, 5, a perfectly competitive firm faces total costs tc = 10 + 5q2.