The short run total cost function is SRTC(Q) = $1,200,000 + 200Q What is the lowest...
The short run total cost function is SRTC(Q) = $1,200,000 + 200Q
What is the lowest price which the firm can accept for one unit of Q?
Homework Answers
The average variable cost = d/dQ (SRTC) = d/dQ (1,200,000 +200Q) = 200.
So, the minimum acceptable price for the firm is $200 as this is the average variable cost.
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The short run total cost function is SRTC(Q) = $1,200,000 +
200Q
What is the lowest...
Suppose a firm with continuous production has short run cost function: C(Q) = 25Q2 + 200Q...
Suppose a firm with continuous production has short run cost function: C(Q) = 25Q2 + 200Q + 1000. 1) Give this firm’s fixed cost. 2) Give this firm’s variable cost function VC(Q). 3) Calculate the firm’s variable cost if it produces Q = 5 units; i.e., compute VC(5). 4) Calculate this firm’s marginal cost function MC(Q); i.e. differentiate the cost function. 5) Neatly graph this firm’s marginal cost function MC(Q) from 0 up to Q = 10 units. 6) Neatly...
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2) Suppose that there are there are two different short run total cost curves that are...
2) Suppose that there are there are two different short run total cost curves that are available to a firm depending on the level of capital it selects, SRTC (Q=3Q for all Q20 and SRTC2(Q= 100+ for all Q20. a) Derive the long run total cost curve of this firm from this short run cost information. b) Find the long run marginal cost when Q=10 and the long run marginal cost when (-100. 10 pts
1. Suppose a perfectly competitive firm has a cost function described by TC = 200Q +...
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2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)-...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
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.
In a perfectly competitive market, a firm has the following short-run total cost function: C(q)=16+4q+q2 The...
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A firm’s profit function is given by π(q) = TR(q)-C(q) where TR is Total Revenue and C...
A firm’s profit function is given by π(q) = TR(q)-C(q) where TR is Total Revenue and C is total cost. If the profit function is π(q)=200q - (120+25q+25q^2), what is the output q , that maximizes the firm’s profit? What is the firm’s revenue, variable cost, and profit? Should the firm operate or shut down in the short run? (Hint: What is the condition for profit maximization?)
Answer each of these questions: (1) In the short run, the lowest price the firm would...
Answer each of these
questions:
(1) In the short run, the lowest price the firm would accept
would be $ _____.
(2) In the long run, the lowest price the firm would accept
would be $_____.
(3) The firm's most efficient output is _____. The output at
which the firm will produce is _____.
Table 3 erage Average Average FixedVariable Total Cost 20 10 6.66 Av Marginal Cost 30 Variable Total Cost 30 17.5 12.66 3 10.5 9.60 9.83 10.85...
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of...
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of producing the 10th unit is S5, then one can conclude that the wage per unit of laboris $0.05. O $0.25 cannot be determined without additional information $1.00
5. A firm produces widgets with production function: q-2vKL. In the short run, the firm's amount of capital is fixed at K = 100. The rental rate is v = 1 and the wage for L is w= 4. (a) Find the firm's short-run total cost curve (SRTC), short-run average cost curve (SRAC), and the short-run marginal cost (SMC) function. (b) Graph the firm's SAC and SMC using the following levels of production: q 25 and q= 100. (c) Find...
2) Suppose that there are there are two different short run total cost curves that are available to a firm depending on the level of capital it selects, SRTC (Q=3Q for all Q20 and SRTC2(Q= 100+ for all Q20. a) Derive the long run total cost curve of this firm from this short run cost information. b) Find the long run marginal cost when Q=10 and the long run marginal cost when (-100. 10 pts
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
Answer each of these
questions:
(1) In the short run, the lowest price the firm would accept
would be $ _____.
(2) In the long run, the lowest price the firm would accept
would be $_____.
(3) The firm's most efficient output is _____. The output at
which the firm will produce is _____.
Table 3 erage Average Average FixedVariable Total Cost 20 10 6.66 Av Marginal Cost 30 Variable Total Cost 30 17.5 12.66 3 10.5 9.60 9.83 10.85...
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of producing the 10th unit is S5, then one can conclude that the wage per unit of laboris $0.05. O $0.25 cannot be determined without additional information $1.00
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