Assume a firm's short-run total cost function is STC = (1/3)q3 – 4q2 + 22q...
Assume a firm's short-run total cost function is
STC = (1/3)q3 – 4q2 + 22q + 100.
a. Determine the output level at which it maximizes profits if p = 10.
b. Is the firm earning a pure profit, normal profit or operating at a loss?
Homework Answers
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Assume a firm's short-run total cost
function is
STC = (1/3)q3 –
4q2 + 22q...
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)-...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5+2q+9. The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?
15. Suppose the production function is given RVL I shott-run cap is 52, and rental rate...
15. Suppose the production function is given RVL I shott-run cap is 52, and rental rate is $4. short run total cost function is (a) STC - 80 +0.0050 (b) STC = 80 +0.502 (c) STC - 80 +0.0502 (d) STC = 80 +0.02Q" (C) STC - 80 +0.29% Short Questions (10 pts.) 16. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its product for $5. (a) Assume that the...
5. (5 pts.) A firm has the following short run total cost function: STC = 900...
5. (5 pts.) A firm has the following short run total cost function: STC = 900 + 500 -2.7Q2 + 0.045Q a. Write equations for AFC, AVC, and MC. b. What level of output minimizes AVC (find Q)? c. What do you expect to be different about cost function in the long run? (2 pts.)
Suppose Q=VKL in the short-run. The firm's short-run total cost curve is +rk C) STC =...
Suppose Q=VKL in the short-run. The firm's short-run total cost curve is +rk C) STC = +K +rk
Q: Suppose a firm's total cost function is TC = 16 + 5Q + 4Q2 ....
Q: Suppose a firm's total cost function is TC = 16 + 5Q + 4Q2 . What is the output level that minimizes average total cost?
33. In the figure above, a firm's total revenue and total cost curves are shown. Which...
33. In the figure above, a firm's total revenue and total cost curves are shown. Which one of the following statements is FALSE? a. Total profit is the vertical distance by which the total revenue curve exceeds the total cost curve. b. At output Q1, the firm makes zero economic profit. c. At an output above Q3, the firm suffers an economic loss. d. At output Q2, the firm suffers an economic loss. Price and cost (dollars per unit) 01...
Suppose a firm's production function is Q = (KL)0.5. In the short run, this firm's capital stock ...
Suppose a firm's production function is Q = (KL)0.5. In the short run, this firm's capital stock is fixed at 100. Calculate the firm's short run total cost curve if w = 5 and v = 5. It can be shown (using calculus) that this firm's short run marginal costs are .1Q. In order to maximize its profits, how much would the firm choose to produce if the market price of its output was $5, $10, or $20. For each...
Given the following total cost function facing a perfectly competitive firm: TC = 500 + 10q2...
Given the following total cost function facing a perfectly competitive firm: TC = 500 + 10q2 (a) If price = 100, determine the level of output and profit earned by the firm in the short-run. (b) Based on your answer for part (a), should the firm continue to produce in the short- run? Why or why not? (c) Graphically illustrate a perfectly competitive firm earning a positive profit, zero profit, and incurring a loss in the short-run.
Suppose there are 100 firms each with a short run total cost of STC = q2...
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10. If market demand is given by QD = 1050 − 50P, how much will be produced in the market? a. 300 b. 400 c. 500 d. 600 Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10. If market demand is given by QD = 1050 − 50P, how much...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5+2q+9. The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?
15. Suppose the production function is given RVL I shott-run cap is 52, and rental rate is $4. short run total cost function is (a) STC - 80 +0.0050 (b) STC = 80 +0.502 (c) STC - 80 +0.0502 (d) STC = 80 +0.02Q" (C) STC - 80 +0.29% Short Questions (10 pts.) 16. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its product for $5. (a) Assume that the...
5. (5 pts.) A firm has the following short run total cost function: STC = 900 + 500 -2.7Q2 + 0.045Q a. Write equations for AFC, AVC, and MC. b. What level of output minimizes AVC (find Q)? c. What do you expect to be different about cost function in the long run? (2 pts.)
Suppose Q=VKL in the short-run. The firm's short-run total cost curve is +rk C) STC = +K +rk
33. In the figure above, a firm's total revenue and total cost curves are shown. Which one of the following statements is FALSE? a. Total profit is the vertical distance by which the total revenue curve exceeds the total cost curve. b. At output Q1, the firm makes zero economic profit. c. At an output above Q3, the firm suffers an economic loss. d. At output Q2, the firm suffers an economic loss. Price and cost (dollars per unit) 01...
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