ZuoTi.Pro
Question



2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in dollars and O denotes total unit sales. The cost equation is TC 300+92Q. a. Determine the firms profit-maximizing output and price. 2 points b. Given the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300+92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation becomes TC - 1,800+ 100+Q. Compute the new Total cost and Marginal cost at the same output level (Q value) from part a: 1 point Determine the firms new output and price level when the cost equation is TC- 1,800+ 100 + O and the demand curve remains P 300-40 d. 2 points Using your answers to part b and c, explain why the profit maximizing quantity changed in your answers to part a and part d: 1 po
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1


Tc= 300 + 929 = 300 ①一ㄧㄣ 프-2089-24 옥스 300 de 208 - 乙 e) 2

1800 + log+ at 26 TC a736 dl at meng-totas maximized ol cost。 zde 290 1Og P:184

0 0
Add a comment
Know the answer?
Add Answer to:
2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in...

    2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in dollars and Q denotes total unit sales. The cost equation is TC 300 +92Q. a.Determine the firm's profit-maximizing output and price. 2 points b. Gven the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300 +92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation...

  • 1. Use the graph below to answer the questions: 80 70 60 50 40 30 20...

    1. Use the graph below to answer the questions: 80 70 60 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P a-bQi a. b. State the equation for the demand function implied in the graph using the format Q c-dP Find the equation for Total Revenue, where TR is a function of output (Q): c. d. Find the equation for Marginal Revenue, where MR is...

  • 1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...

    1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...

  • the firm faces a constant price (P) of $60 A firm in a perfectly competitive market...

    the firm faces a constant price (P) of $60 A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...

  • Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for...

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its...

    A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit-maximizing level of output? What is the profit-maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by the state government. What is the profit-maximizing level of output?

  • A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=150 MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • Please show work! Homework Assignment 1 You must show all your work to earn points ECON...

    Please show work! Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...

  • Suppose a price searching firm faces a demand curve given by Q = 30−.5P, and has...

    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?

  • 4) A firm faces the demand curve, P-80-3Q, and has the cost equation, What is the...

    4) A firm faces the demand curve, P-80-3Q, and has the cost equation, What is the equation for the firm's total revenue? 200+20Q. a) b) What is the equation for the firm's marginal revenue? c) What is the quantity that maximizes total revenue? d) Find the optimal quantity and price for the firm if they are trying to maximize profit e) What is the firm's profit at the price and quantity in (d)? f) Now suppose that the demand for...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT