A Representative Firm with Short-Run Total Cost Given by TC

question 30

Multiple Choice

A representative firm with short-run total cost given by TC = 50 + 2q + 2q² operates in a competitive industry where the short-run market demand and supply curves are given by Q_D = 1,410 - 40P and Q_S = -390 + 20P.Its short-run profit-maximizing level of output is:

• A) 0 units.
• B) 1 unit.
• C) 2 units.
• D) 5 units.
• E) 7 units.

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