Question

A film operates in a perfectly competitive market. The Market price of its product is 4 birr and the total cost funtion is given by TC- total cost and Q is the level of output
a) what level of output should the film produce to maximum its profit?
b) determine the level of profit at equilibrum.
c) what minimum price is required by the firm to stay in the market ?

Answer 1

Answer:

A film operates in a perfectly competitive market. The Market price of its product is 4 birr and the total cost funtion is given by TC- total cost and Q is the level of output

a) what level of output should the film produce.