Question 8 3 pts Afirm has the following cost function: C (q) = 16 + 100q2...
Question 2 1.25 pts A firm has a Total Cost function: TC (Q)-484 9Q-1.25Q2 + 0.08Q3 What is the firm's Shutdown Quantity, to the nearest 0.1 unit?
Question 3 Afirm has the following demand function Qd = 312 -P/2. Its average total cost and marginal cost are constant at $92. 1. (1 point) What is the per-unit price the firm will charge if it uses two-part pricing? 2. (3 points) What is the profit-maximizing output if the firm uses two-part pricing? You must show your work to receive credit for this question 3.(3 points) What is the firm's profit if it uses two-part pricing? You must show...
Question 8 1 pts (8) Afirm with a cost of capital of 8% will make a decision about two mutually exclusive projects. Project X requires an initial investment of $35,000 today and is expected to generate $16,000 for the next 10 years. Project Y requires an initial investment of $45,000 and is expected to generate $14,200 for the next 10 years. The firm will choose which has an NPV of Project X: $53,300 Project Y: 572,361 Project Y: $50,283 Project...
need help with 5 and 6 Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
Question 3 1 pts Suppose a firm in a perfectly competitive market has the cost function c(y)= y2 + 2y + 9 What is the firm's fixed cost? y+2+ 2y + 2 Oy+2 Question 4 1 pts Suppose a firm in a perfectly competitive market has the cost function c(y)= y2 + 2y + 9 What is the firm's marginal cost? 2y + 2 Oy+2+2 Oy+ 09 2y
3.[2 points) A firm's short-run total cost is TC = 10,100 + 7, 700Q-100Q2 +Q3/3, and its marginal cost is MC = 7, 700-200Q+Q2. What is the firm's shutdown price? A) $45 B) $200 C) $1,100 D) $18 4.[2 points) Cravats inc., which sells bags designed by famous people, faces a demand curve of Q = 150 - 0.2P, where Q is measured in hundreds of bags and P is the price per bag. The marginal cost of production is...
11 Question (5 points) Afirm sells liquid gold in a competitive market. The firm's cost function is c(y) = – 25.00y2 + 700y + 40,320, where y stands for the pounds of gold liquefied and sold by the firm. In the questions below, provide your answers to the nearest two decimals. 2nd attempt Part 1 (2 points) Feedback See Hint The postive level of output (pounds of liquid gold) at which the firm experiences the lowest possible marginal cost is...
3. Suppose that the cost function of q is given by: C (q) = 16 + 4q + q^2 (a) Find the fixed and variable cost. (b) Find the average cost and marginal cost. 1 (c) Draw the relationship between MC and AC. Prove that they always intersect at the minimum. (Hint: compute the derivative of AC with respect to q and set it equal to zero. Then use this equation to show that MC=AC)
In a perfectly competitive market, a firm has the following short-run total cost function: C(q)=16+4q+q2 The market demand is Q(p)=220-p a. Show that marginal cost curve passes through the minimum point of average cost curve. Draw a figure to show it. b. Find the firm’s individual short-run supply function. Draw it on the above figure. For the following questions, suppose that there are currently 10 identical firms in this market. c. What is the market supply curve? What are the...
Suppose a firm's cost function is C (q) = 2q2 + 8. The output q that minimizes average total cost is: (Hint: At the minimum of the ATC, ATC is equal to MC) a)4 b) 2 c) 0 d) 8