Answer to Question #165734 in Microeconomics for shubhi

Question

Each of 100 firms in a perfectly competitive industry has an AVC function AVC=2Q where Q represents the output produced. If the price of the product is ₹100 find the total quantity supplied in the market when a) TFC= ₹10000 b) TFC= ₹20000

Answer 1

$$VC=2Q^2$$

a)

$$2Q^2=\frac{10000}{100}$$

$$Q=7$$

b)

$$2Q^2=\frac{20000}{100}$$

$$Q=10$$