A leather good company has the following total cost function of making leather bags: C(q) =...

A leather good company has the following total cost function of making leather bags: C(q) = 3000+20q2. What is function of the marginal cost? Group of answer choices MC(q)=20q2 MC(q)=3000 MC(q)=3000+20q2 MC(q)=20q MC(q)=40q

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Rahul Sunny answered 2 years ago

In a competitive market, a leather good company has the following total cost function of making...

In a competitive market, a leather good company has the following total cost function of making leather bags: C(q) = 75+q2. What is function of the firm’s supply curve? Group of answer choices S(p)=2p S(p)=5p S(p)=25p S(p)=p S(p)=0.5p

A company in perfect competition has the total cost function: C(q) = 50 + 0.5 q...

A company in perfect competition has the total cost function: C(q) = 50 + 0.5 q + 0.08 q2 a. Determine what is the long-run equilibrium price level and the corresponding output of the firm.. b. If the company experiences a technological improvement that reduces its costs by 25%, what is the equilibrium quantity of the company in the short term if the market price is the one found in point a.

. A natural monopolist has the total cost function C(Q) = 500 + 5Q and faces...

. A natural monopolist has the total cost function C(Q) = 500 + 5Q and faces the inverse demand curve P = 100 – Q a) Find the monopolist’s price, quantity, profits, consumer surplus and deadweight loss if the monopolist is not constrained by a regulator (you probably want to draw a picture to help you answer CS and DWL) P = _________ Q = _________ π = _________ CS = ¬_________ DWL = _________ b) A regulator constrains the...

Consider a monopolist who has a total cost function C(q) = 1000 + 10q The demand...

Consider a monopolist who has a total cost function C(q) = 1000 + 10q The demand function for the market is D(p) = 600 - 12.5p Answer each part below:(a) Use the inverse demand equation to derive the monopolist's marginal revenue equation, MR(q). (1 points) (b) What is the marginal cost, MC(q)? (0.5 points) (c) Solve for the profit-maximizing quantity and price. Note: Explain or show your work! (2 points) (d) Compute the price elasticity of demand at the profit-maximizing...

A perfectly competitive firm has a total cost function equal to: C(Q) = 20,000 + 450Q...

A perfectly competitive firm has a total cost function equal to: C(Q) = 20,000 + 450Q - 4Q2 + 0.01Q3 If the market price for the firm is $142 and the firm is producing 220 units, what are their profits/losses? Refer to the firm above. What is the minimum market price the firm needs in order to produce in the short-run? Suppose you are a manager of perfectly competitive firm and at your optimal / profit-maximizing Q, ATC = $20...

Suppose that a given firm has the following total cost and marginal cost functions: C(q) =...

Suppose that a given firm has the following total cost and marginal cost functions: C(q) = 50+5q+ 5q 2 , MC(q) = 5+10q. 2 (a) Write down expressions for the fixed cost, average fixed cost, average total cost and average variable cost associated with this production function. In addition, identify the quantity at which average total cost is minimized. (b) Consider the restaurant industry. Provide an example of a fixed cost, variable cost, and sunk cost. Be sure to justify...

Suppose that there is “dominant” firm with total cost function of c(q) = 100 + 10q...

Suppose that there is “dominant” firm with total cost function of c(q) = 100 + 10q + 0.25q2. It faces a market demand function (inverse) of p = 100 − 0.5Q, where Q indicates total market supply. This dominant firm has to deal with 10 fringe firms, each of whom behaves perfectly competitively. Each fringe firm has a marginal cost function dc(q)/dq = 20q + 25 a) Calculate the supply function of the fringe firms b) Using this, calculate the...

A monopolist has the following cost function: C(q) = 800 + 8q + 6q2 It faces...

A monopolist has the following cost function: C(q) = 800 + 8*q + 6*q2 It faces the following demand from consumers: P= 200 – 2*Q. There is another firm, with the same cost function, that may consider entering the industry. If it does, equilibrium price will be determined according to Cournot competition. How much should the monopolist optimally produce in order to deter entry by the potential entrant? How much would the monopolist produce if there were no threat of...

A monopolist has the following total cost function: C = 50 + 10Q + 0.5Q2 They...

A monopolist has the following total cost function: C = 50 + 10Q + 0.5Q2 They face the market demand: P = 210 – 2Q a. What is the profit-maximizing price and quantity set by this monopoly? What is this monopolist’s profit? b. Calculate the producer surplus, consumer surplus, and deadweight loss. c. If the price elasticity of demand (ԑ) faced by this monopolist at the equilibrium is –1.625, what is the Lerner Index? d. If the price elasticity of...

Let the total cost function be C (q) = 50 + 2q + 0:5q2. For what...

Let the total cost function be C (q) = 50 + 2q + 0:5q2. For what values of q we have economies of scale?

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