(a) A firm has a total cost schedule of TC = 10 – 3q + 12q2. Draw a sketch graph of the total cost function showing all important points. (b) Assuming that the quantity sold is greater than 2 u...
- (a) A firm has a total cost schedule of TC = 10 – 3q + 12q2. Draw a sketch graph of the total cost function showing all important points. (b) Assuming that the quantity sold is greater than 2 units (q > 2), at what output level will TC = £200?
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(a) A firm has a total cost schedule of TC = 10 – 3q + 12q2. Draw a sketch graph of the total cost function showing all important points. (b) Assuming that the quantity sold is greater than 2 u...
8. (8 marks) Suppose the total cost function of a firm is: C = 3q’ –...
8. (8 marks) Suppose the total cost function of a firm is: C = 3q’ – 12q2 + 20 Find the marginal cost function. Show your steps. (2 marks) Find the average total cost function. Show your steps. (2 marks) Find the output level that correspond to the efficient scale of the firm. Show your steps. (2 marks) Show your results in (c) in a diagram. (2 marks)
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.)
Given the total cost function for a firm is (Q = output and TC = total...
Given the total cost function for a firm is (Q = output and TC = total cost) Q TC 0 0 1 20 2 39 3 56 4 71 5 84 6 95 the average total cost of producing six units of output is $15.83 True OR Flase
Consider the cost function C(Q) = 60Q – 12Q2 + Q3. a. Sketch the total cost,...
Consider the cost function C(Q) = 60Q – 12Q2 + Q3. a. Sketch the total cost, the total variable cost, and the fixed cost for 0-12 units of output. b. Find expressions for the ATC, AVC, AFC, and MC curves, and sketch the curves on a single graph, making sure the curves are correctly related to each other. At what output level does ATC reaches its minimum? c. What can you say about the shape of the marginal product of...
Assume that a competitive firm has the total cost function: TC=1q3−40q2+740q+1500 Suppose the price of the...
Assume that a competitive firm has the total cost function: TC=1q3−40q2+740q+1500 Suppose the price of the firm's output (sold in integer units) is $750 per unit. Using calculus and formulas (but no tables and restricting your use of spreadsheets to implementing the quadratic formula) to find a solution, what is the total profit at the optimal integer output level? Please specify your answer as an integer. Hint 1: The first derivative of the total cost function, which is cumulative, is...
2 Suppose that paper factory had a total cost function given by: TC 588 +q +3q...
2 Suppose that paper factory had a total cost function given by: TC 588 +q +3q . The paper factory is a price taker and the price of a unit of paper is $109. Calculate the profit-maximizing quantity of paper. (Round to the nearest two decimal places if necessary.) Answer:
2. Propose and sketch a demand function for a product that currently sells for $500 with...
2. Propose and sketch a demand function for a product that currently sells for $500 with quantity sold at 25. Write both regular and inverse demand functions. 3. Representative firm in an industry has total cost function TC(a) -1849+and marginal cost function MC-2q a) What is the fixed cost function for the firm? What is the variable cost function? b) Derive average total, average fixed and average variable cost functions. c) Find the minimum efficient scale (-output that corresponds to...
6. (10 points) Draw a graph showing the short-run average total, average variable, and marginal cost curves for a typical firm. Draw in three prices that result in the firm making positive profits, b...
6. (10 points) Draw a graph showing the short-run average total, average variable, and marginal cost curves for a typical firm. Draw in three prices that result in the firm making positive profits, breaking even, and making negative profits that are less than fixed costs.
6. (10 points) Draw a graph showing the short-run average total, average variable, and marginal cost curves for a typical firm. Draw in three prices that result in the firm making positive profits, breaking even,...
1. A firm has a total cost function TC(y) 10y 5y+ 40. a) What is the...
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?
b) (4 points) Graph demand, marginal revenue, marginal cost and average total cost (ATC) below. Mark...
b) (4 points) Graph demand, marginal revenue, marginal cost and
average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to
calculate it) and the endpoints to all of the curves.
c) (2 points) Given your answers above, explain which curve(s)
will shift in the long run and why.
d) (4 points) Draw the graph that represents this firm in the
long-run. Label the profit-maximizing price and quantity as P* and
Q*, respectively. No numbers are necessary, but be...
8. (8 marks) Suppose the total cost function of a firm is: C = 3q’ – 12q2 + 20 Find the marginal cost function. Show your steps. (2 marks) Find the average total cost function. Show your steps. (2 marks) Find the output level that correspond to the efficient scale of the firm. Show your steps. (2 marks) Show your results in (c) in a diagram. (2 marks)
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.)
2 Suppose that paper factory had a total cost function given by: TC 588 +q +3q . The paper factory is a price taker and the price of a unit of paper is $109. Calculate the profit-maximizing quantity of paper. (Round to the nearest two decimal places if necessary.) Answer:
2. Propose and sketch a demand function for a product that currently sells for $500 with quantity sold at 25. Write both regular and inverse demand functions. 3. Representative firm in an industry has total cost function TC(a) -1849+and marginal cost function MC-2q a) What is the fixed cost function for the firm? What is the variable cost function? b) Derive average total, average fixed and average variable cost functions. c) Find the minimum efficient scale (-output that corresponds to...
6. (10 points) Draw a graph showing the short-run average total, average variable, and marginal cost curves for a typical firm. Draw in three prices that result in the firm making positive profits, breaking even, and making negative profits that are less than fixed costs.
6. (10 points) Draw a graph showing the short-run average total, average variable, and marginal cost curves for a typical firm. Draw in three prices that result in the firm making positive profits, breaking even,...
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?
b) (4 points) Graph demand, marginal revenue, marginal cost and
average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to
calculate it) and the endpoints to all of the curves.
c) (2 points) Given your answers above, explain which curve(s)
will shift in the long run and why.
d) (4 points) Draw the graph that represents this firm in the
long-run. Label the profit-maximizing price and quantity as P* and
Q*, respectively. No numbers are necessary, but be...
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