Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2, The firm faces a market price p = 50.
(a) Write expressions for total revenue TR and marginal revenue MR as functions of output q.
(b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q.
(c) For what value of output is ATC minimized?
(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 profits and label it
(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?
As per HOMEWORKLIB POLICY I can solve only till part 'd' . I request you to please post again for the remaining parts so that I can solve the rest.
Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2,...
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.
Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q. (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q. (c) For what value of output is ATC minimized?
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...
Consider a competitive rm with total costs given by T C(q) = 100 + 10q + q 2 The rm faces a market price p = 50. (a) Write expressions for total revenue T R and marginal revenue MR as functions of output q. (b) Write expressions for average total cost AT C, average variable cost AV C, and marginal cost MC as functions of output q. (c) For what value of output is AT C minimized? 1 (d) Find...
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?
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
Let TC = 3000 +100Q -12Q2 + Q3 Assuming the firm operates in a competitive market (MR=MC=P): Solve for the profit maximizing Q (label Q*) when P = 100. At this level of Q, calculate AFC, AVC, ATC, TFC, TVC, TC, TR and profits/losses. Should the firm shut down or continue to operate? Explain. Graph your calculations.
Labor TVC TC MC AFC AVC ATC 25 50 75 100 25 125 (a) Complete the blank columns (5 points). Please create a table like mine and fill it. (b) Assume the price of this product equals $10. What's the profit-maximizing output (q)? (3 points). Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing a where P=MC.(2 points) (c) What is the profit? (3 points) TOTAL COST (TC) - the...
II.A. Identify and label the profit-maximizing level of output (Q) that will be pursued by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand Output(Q) MR II.B. Draw and label the rectangle that represents the Total Revenue (TR) generated by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand -Output(Q) MR II.C. Draw and label the rectangles that represent Total Cost (TC), Total Fixed Cost (TFC) and Total Variable Cost (TVC) generated by this ‘monopolistic' firm....
The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 100 + 10Q. What is the; a. fixed cost (FC), b. variable cost (VC), c. marginal cost (MC), d. average fixed cost (AFC), e. average variable cost (AVC), f. average total cost (ATC)?