Segun Gorcery stores operates in a perfect competitive setting. He sells a particular brand of...
Question:
Segun Gorcery stores operates in a perfect competitive setting. He sells a particular brand of beverage which is homogenous in the market. The cost and price functions for the beverage are outlined below:
P = 120 - 0.5Q
C= 420 +60Q + Q2
Determine the optimal output which maximizes his profit What is the profit level? At what price will he sell the products?
Homogenous Commodities:
In economic terms, homogenous commodities are referring to those goods which are similar to each other both externally and internally. The perfect competitive market characterizes in producing homogeneous commodities.
Answer and Explanation: 1
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View this answerComputing optimal price and quantity
The total and marginal cost functions can be written as:
{eq}\begin{align*} TC &= 420 + 60Q + {Q^2}\\ MC &=...
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Perfectly Competitive Market: Definition, Characteristics & Examples
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Chapter 3 / Lesson 63
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Learn the definition of perfect competition and understand how a perfectly competitive market works. Study the characteristics of a perfectly competitive market with examples.
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