3. For each of the total cost functions listed below, write the corresponding expressions for marginal...
5. For each of the short-run total cost functions listed below, write the corresponding expressions for total fixed cost (TFC), total variable cost (TVC), short-run average cost (SAC), average fixed cost (AFC), average variable cost (AVC), and short-run marginal cost (SMC). Then, for each part, draw the SAC, AFC, AVC, and SMC curves on the same graph. 2. STC =109 b. STCQ)=160+10g C. STC(Q)=100 d STC(Q)=10.10 e. STC(Q)=160+1092
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...
Question 3-4
SESSION 13 The marginal revenue is the rate of change in total revenue per unit increase in output, Q The marginal cost is the rate of change in total cost per unit increase in output, Q AR is defined as average revenue per unit for the first Q su ccessive units sold. AR is determined by dividing total reven ue by the quantity sold, Q The AR function is equal to price, P. where Pis given by the...
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...
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?
D Question 7 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average Total Cost (ATC) curve. What is the variable cost when the quantity (Q) being produced is 6? P MC ATC /AVC $15 $11 $8 Q O $66 $8 O $15 $11 Question 8 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average...
4. Determine the average function and the marginal function for each of the following functions Totals: a) Total income TR = 100 Q - Q2 b) Total cost TC = 1000+ 10 Q + .01 Q2 c) Total profit TP = 50 Q - 0.1 Q2 - 1000 5. Given the following total income function TR = 100 Q - Q2, determine the level of production that allow to maximize total income. 6. Given the total cost function TC =...
Name 3. For each of the following production functions below, find the LR total cost as a function of Q: TC(O) LR average total cost as a function of Q: ATCO) .R average total cost vary with Q? (Hint, find the derivative: dATC(Qydo) Does this cost t function exhibit economies of scale, diseconomies of scale, or constant returns to scale? A. Q-4L2 B. Q-2L C. Q-L Given fixed cost S10 and the total cost given below complete the table assuming...
Suppose the firm's total cost and marginal cost functions are given by TC = 54 + Q + 2Q3 and MC = 1 + 4Q2, respectively. What is the output level that minimizes average total cost? 2 3 6 8
Suppose the firm's total cost and marginal cost functions are given by TC = 64 + Q +4Q3 and MC = 1+12Q2, respectively. What is the output level that minimizes average total cost? 2 3 6 00