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.
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Suppose that a firm has a short run, total cost function given
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Suppose a firm has an average total cost function given by: ATC 9610/q +1 +10q Calculate...
Suppose a firm has an average total cost function given by: ATC 9610/q +1 +10q Calculate the price where the firm breaks even (i.e. profit $0). (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer
Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (f)...
Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (f) If fixed costs increase from 100 to 500, what happens to the profit-maximizing level of output, TR, TC, and π? (g) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?
Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q...
Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (d) Find the profit-maximizing level of output q^*. At this level of output, what are TR, TC, ATC, and π? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit-maximizing level of output. If there are profits, shade the region corresponding to profit and label it.
A firm operates in a perfectly competitive industry. Suppose it has a short run total cost...
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The market price is p=50 3. Consider a competitive firm with total costs given by TC(q)...
The market price is p=50
3. Consider a competitive firm with total costs given by TC(q) = 100 + 10q+q? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corre- sponding to profit and label it. (f) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, TR, TC, and a? (g) If fixed...
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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 $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?
2. A firm operates in a perfectly competitive industry. Suppose it has a short run total...
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A price-taker firm has a short run total cost function given by: TC=1.2+5q+0.3q2. Calculate the short run price at which this profit- maximizing, price taker would shutdown in the short run. (Do not include a "$" sign in your response.) Answer:
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The market price is p=50
3. Consider a competitive firm with total costs given by TC(q) = 100 + 10q+q? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corre- sponding to profit and label it. (f) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, TR, TC, and a? (g) If fixed...
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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?
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