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boyakko [2]
3 years ago
10

Suppose that a competitive​ firm's marginal cost of producing output q​ (MC) is given by MC (q )equals6plus2 q. Assume that the

market price​ (P) of the​ firm's product is ​$18 . What level of output​ (q) will the firm​ produce? The firm will produce nothing units of output. ​(Enter your response rounded to two decimal places.​)
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
4 0

Answer:

The firm will produce <u>6.00</u> units of output.

Explanation:

From the question, we have:

MC(q) = 6 + 2q ……………… (1)

P = $18 ………………………. (2)

For any firm, profit is maximized when MC = P. To determine the level of output (q) the firm will produce, we therefore equate equations (1) and (2) and solve for q as follows:

6 + 2q = 18

2q = 18 - 6

2q = 12

q = 12 / 2

q = 6.00

Therefore, the firm will produce <u>6.00</u> units of output.

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