A firm in a competitive market has a cost function: TC = 86 + 12Q - 1.6Q2 + 0.1Q3. What is the firm's shutdown price.
Cost function is TC = 86 + 12Q - 1.6Q2 + 0.1Q3
Variable cost is VC = 12Q - 1.6Q2 + 0.1Q3
Average Variable cost is AVC = VC/Q = 12 - 1.6Q + 0.1Q^2
Shut down point has AVC'(Q) = 0
-1.6 + 0.1*2Q = 0
Q = 1.6/0.2 = 8 units
AVC (minimum) = shut down point = 12 - 1.6*8 + 0.1*8^2 = $5.6
Hence, the shut down price is $5.6
A firm in a competitive market has a cost function: TC = 86 + 12Q -...
5. Each firm in a competitive market has a cost function TC() 102q+ and there are n = 20 firms in the short run. The short-run equilibrium price is p-5. What happens in the long-run equilibrium as compared to the short-run equilibrium (a) Does the equilibrium price increase or decrease? Explain (b) Does the number of firms increase or decrease? Explain (c) Does the output of a single firm increase or decrease? Explain (d) Does the total market output increase...
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.)
Question 4 Consider the Sunshine Company, a perfectly competitive firm with the following cost function TC 12006Q + 202 where Q is the firm's output per day. a) Find the firm's marginal cost function. [2 marks] C b) If the price of Sunshine's product equals $66, how many units per day should the firm produce? [4 marks] c) Find the firm's average variable cost function. [3 marks] d) Is average variable cost at the quantity you calculated in part b)...
A perfectly competitive firm faces total cost of product as follows: TC = 0.1q2 + 10 + 50. a. If market price is $20/unit, find the output rate at which firm's profit is maximized. b. Find the firm's shut-down point. c. Find the firm's short-run supply function (express output q as a function of market price P). d. If there are 100 identical firms (have the same cost of production) in the market, determine market supply function.
A firm with market power faces a demand curve: PD = 75 - 0.7Q and its cost function is: TC = 348 + 12Q - 1.28Q2 + 0.062Q3 What is the firm's profit-maximizing output, What is the firm's maximum profit, What is the firm's markup of price over marginal cost
A perfectly competitive firm faces a market price of $100 and has total cost of TC = 100 + 0.25q + 0.01q2. How much output (q) should this firm produce to maximize profits?
Assume that a competitive firm has the total cost function: TC=1q3−40q2+740q+1900 Suppose the price of the firm's output (sold in integer units) is $550 per unit. Using tables (but not calculus) to find a solution, what is the total profit at the optimal output level? Please specify your answer as an integer.
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?
a perfectly competitive firm has the following cost functions: TC =1000 + Q + 0.002Q^2 MC =1 +0.004Q market price is 31 based on the profit maximization rule how much is the firm's total profit
4. The engineering department has estimated your firm's cost function to be TC(O) = 5,000 + Q-Q? + Q: 13 This cost function has a marginal cost function MC(Q) = 1 -2Q+Q? a. Is this your long run or short run cost function? b. How much will it cost to produce 100 units? c. What is the average cost of 100 units? d. What is the marginal cost of the 100th unit? e. At what quantity is minimum average variable...