### Determining the perfectly competitive industry

##### Reference no: EM131037679

1. A firm operates in a perfectly competitive industry.  Suppose it has a short run total cost function given by TC= 42000 +0.001q^2.  If the market price is 15, what is the firm's profit-maximizing quantity?

(Answers must be with 2 of the true value to be counted as correct.  Do not include commas or plus signs.)

2. A firm operates in a perfectly competitive industry.  Continue to suppose it has a short run total cost function given by TC = 42000 +0.001q^2.  If the market price is 15, what is the highest profit the firm can earn?

(Format: answers must be with 4 of the true value to be counted as correct.  Do not include commas, dollar signs, or plus signs.)

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