You are the manager of a firm that sells its product in a co

You are the manager of a firm that sells its product in a competitive market at a price of $100. Your firm\'s total cost function is TC = 40 + 5Q2. The profit-maximizing output for your firm is

Select one:

a. 5.

b. 10.

c. 45.

d. 4/5.

Solution

For Perfectly competitive firm Profit amximising condition is

P=MC

MC=dTC/dQ=10Q

P=10Q=100

Q=10 Hence option B is correct