Question

A price-taker firm has a short run total cost function given by: TC=1.2+5q+0.3q2. Calculate the short run price at which this

0 0
Add a comment Improve this question Transcribed image text
Answer #1

# TC= 12 +59 +0.392 Variable cort (Velz 58 +6392 Ave (Average variable Cort)59+0.392 AVC 25 +0. 39 Since Ave is Cinear functi

Add a comment
Know the answer?
Add Answer to:
A price-taker firm has a short run total cost function given by: TC=1.2+5q+0.3q2. Calculate the short...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1. If each competitive firm in an industry has the short run cost function TC=50+5q+q2, and...

    1. If each competitive firm in an industry has the short run cost function TC=50+5q+q2, and MC=5+2q. The market price is $35. a. What is the profit maximizing output level for each firm? b. What are the profits? c. Now, suppose that fixed costs were $250 instead of $50, so the firm faces the short run cost function TC=250+5q+q2. How does this change affect the firm’s output decision and profits? Should the firm continue to operate in the short run?

  • Suppose that a firm has a short run, total cost function given by: TC= 1089 +10q...

    Suppose that a firm has a short run, total cost function given by: TC= 1089 +10q +9q2. 1. Determine the profit-maximizing quantity of production when price is $244. _____________________________________ q= 13 2. Calculate the price at which this firm breaks even (i.e. profit = $0). _____________________________________ $208 3. Calculate the price at which this firm shuts down in the short run. _____________________________________ $10 The answers are given but can you show how to get them step by step.

  • 4. The total cost function of a firm is TC = 10+ 2Q-0.2Q2+0.01Q3. The price of...

    4. The total cost function of a firm is TC = 10+ 2Q-0.2Q2+0.01Q3. The price of the output is $6. a) What is the marginal cost function of the firm? b) What are the total and total variable cost functions and the average total cost function of the firm? c) What are the fixed costs of the firm? d) What is the profit maximizing rate of output? What are the profits? How do you know the rate of output maximizes...

  • A firm operates in a perfectly competitive industry. Suppose it has a short run total cost...

    A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC = 1200 + 2Q + 0.03Q2. If the market price is $38, what is the firm’s profit maximizing quantity?

  • 38) Assume the following inverted demand function of a firm in the short run: P =...

    38) Assume the following inverted demand function of a firm in the short run: P = 50 - .5Q. Now assume the total cost function of this firm is : TC = 50 + 100Q - Q2 The above cost function yields the MC function as 100- 2Q (a). Calculate the profit maximizing price and output of this firm. (Hint: Obtain the MR first). (b). Is this firm earning a profit or loss in the short run? Explain. Is this...

  • A firm produces a product in a competitive industry and has a total cost function (TC)...

    A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)

  • 1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by...

    1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5+2q+9. The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?

  • 2. A firm operates in a perfectly competitive industry. Suppose it has a short run total...

    2. A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 10000 +0.04q?. If the market price is 56, the firm's profit-maximizing quantity is?

  • Suppose that a price-taker firm has a marginal cost function given by: MC 30+0.5q. The firm...

    Suppose that a price-taker firm has a marginal cost function given by: MC 30+0.5q. The firm could join a cartel in its industry and agree to a quota of 5 units. The collusion drives the price of the good from $35.91 to $70.00. Calculate the producer surplus of this firm when they produce the quota. (Do not enter a "$" sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check

  • Suppose the total cost function for a firm is given by: TC- 100+2q +0.5q2. Find the...

    Suppose the total cost function for a firm is given by: TC- 100+2q +0.5q2. Find the marginal cost function and then use that to determine the marginal cost of the 20th unit. (Do not include a sign in your response.) Answer:

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT