Which of the following is False?
a) Rightward shift in demand + unchanged supply curve = higher
equilibrium price and larger equilibrium quantity
b) Rightward shift in demand + Rightward shift in supply curve = lower
equilibrium price and small
For a particular perfectly competitive firm,
STC = 100 + 20Q + Q2. If the market price is equal to 40,
(1) at what level of output should the firm operate to maximize profit?
In order to maximize profit, MC=P/MR
MC= 20 + 2Q, P = 40 20 + 2Q = 4