A firm has the cost curve C(q) = 100 + l50q - 46q2 + 5q3. What are the equations of the firm's marginal cost, average variable cost, and average cost curves? What are the minimum values of marginal cost, average variable cost, and average cost, and at what levels of output do they occur? What is the value of marginal cost when average variable cost and average cost are at a minimum?
need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
4) Suppose each firm's long run average cost curve, for positive levels of output, is given by AC 0.10.05Q+5/Q. The marginal cost curve is given by MC 0.+0.1Q. (a) Find the minimum efficient scale for the above cost function (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P 13.1-0.040. What is the market quantity? How many firms are there? (d) Suppose demand increases to P...
1. A firm has a total cost function TC(y) 10y 5y+ 40. a) What is the firm's marginal cost of producing 100 units of output? b) What is the average variable cost of producing 100 units of output? c) At what level of output is average total cost at a minimum?
2. An industry consists of many identical firms, each with the cost function C(q) = 100 + 30q – 8q2 + q3 a. Derive the average cost, average variable cost, and marginal cost curves of a firm. b. Compute the outputs at which the AC and AVC curves reach their minimums. C. If the market price is $40, and each firm is a price-taker, how much output will each firm supply? d. How much profit or loss is each firm...
Consider a firm that has cost function of: TC = 24 + 10Q + 1.5 Q^2 a) Draw the average cost and marginal cost curves for this firm (label with equation). b) Draw the supply curve of this firm c) What are the profits of the firm if the price of output is $44?
Suppose a firm has the following total cost function: TC = 300 + 40 Q – 8Q2 + (2/3) Q3 (a) Write an equation for (i) average fixed cost; and (ii) average variable cost (b) What will be the value of average (total) cost when Q = 60? (c) What will be the marginal cost, when Q = 20? (d) For this firm what will be the value of average variable cost at its minimum
Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05Q + 5/Q. The marginal cost curve is given by MC = 0.1 + 0.1Q. (a) Find the minimum efficient scale for the above cost function. (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P = 13.1-0.04Q. What is the market quantity? How many firms...
Suppose a price searching firm faces a demand curve given by Q = 30−.5P, and has an average cost curve given by AC = 8. a. Find the equations for the marginal revenue curve and the marginal cost curve. b. Find the profit maximizing level of output and the profit maximizing price. At this combination, what is the level of firm profit? What is the level of deadweight loss?
Suppose a profit-maximizing monopolist faces a demand curve given by Q = 130 – P. a. Write the equations for total revenue and marginal revenue. b. The firm has fixed costs of capital equal to $3500 and variable costs are estimated to be 1⁄2Q2 – 50Q. Write the equations for total cost, average total cost, and marginal cost. c. Calculate the profit-maximizing price and output for the firm. d. Calculate the firm’s profits. e. Graph the curves representing the firm’s...
a first faces the demand curve, Q=180-5p, and has the cost equation, c=100+24Q. what is the equation for the firm's marginal revenue?