2/a/Perfect Competition Firm cost equation: TC = 64 - 4Q + Q2 Market demand: Q =...

2/a/Perfect Competition
Firm cost equation: TC = 64 - 4Q + Q²
Market demand: Q = 608 - 4P
Solve for how many firms serve the market. Enter as a value.

b/Producer surplus is the:?

-Area below the market price and above the supply curve

-Minimum amount consumers will pay for a good.

-Area below the demand curve and above the market price of the good.

-Area above the supply curve but below the demand curve.

c/If demand is P = 80 - 2Q and supply is P = 20 + 3Q, what is the value of the Producer Surplus?
Enter as a value.

Expert Solution

Rahul Sunny answered 8 months ago

A firm in monopolistic competition has a firm demand curve of P = 130 – Q. The firm cost function is TC = 2 + 4Q. How many units will the firm produce?

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