The market price in a perfectly competitive industry is P=$115….

Question Answered step-by-step The market price in a perfectly competitive industry is P=$115…. The market price in a perfectly competitive industry is  P=$115. Suppose that you have estimated the AVC function for a perfectly competitive firm to be:               AVC = 125-.21Q +.0007Q2Total fixed cost equal $3,500.               a.  Find the profit maximizing output for this perfectly competitive firm at the market                      price.b.   Calculate total revenue at the profit maximizing output. c. Calculate total variable costs at the profit maximizing output. d. Calculate profits at the profit maximizing output. e. Should this firm produce at the profit maximizing output or should it shut down? Justifyyour answer in words and by using numbers, not just by reporting a rule. f. Calculate the unique market price below which the firm should shut down. Is your answerin part e consistent with what you have just found in part d?  Business Economics Macroeconomics BECON 300 Share QuestionEmailCopy link Comments (0)