The short-term total cost curve is as follows. TC=10+10Q^2

Lead short-term average cost curve (AC), average variable cost curve (AVC), and average fixed cost curve (AFC) into formulas, and draw pictures.

Expert Solution

TC = 10 + 10*Q^2

TVC = 10*Q^2, TFC = 10

1) AVC = TVC/Q = 10Q

2) AFC = TFC/Q = 10/Q

3) AC= AFC+ AVC

= 10/Q + 10Q

Rahul Sunny answered 2 years ago

1. If total cost is given by TC = 500+ 10Q − 10Q2 + 0.5Q3 ,...

1. If total cost is given by TC = 500+ 10Q − 10Q2 + 0.5Q3 , then average variable cost is minimized at __________ units of output. a. 20 b. 10 c. 50 d. 5 e. 100 12. If output is produced according to Q = K0.5 + 3L0.5, then this production process exhibits: a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. first decreasing and then increasing returns to scale e. first...

A monopolist has total cost TC = Q2 + 10Q + 100 and marginalcost MC...

A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10. It faces demand Q = 130 - P (so its marginal revenue is MR = 130 - 2Q). Its profit-maximizing price is$50$75$100

A3 - 10. Imagine a firm with the short run cost structure: Total Cost ( TC)=...

A3 - 10. Imagine a firm with the short run cost structure: Total Cost ( TC)= 9 +q2Marginal Cost(M)= 2q. (a) Write out expressions for total fixed cost ( FC ), total variable cost ( VC ), average variable cost ( AVC ), and average total cost ( ATC ). Be sure to show your work. [4] (b) At what quantity is AVC at its minimum (at what AVC level)? At what quantity is ATC at its minimum (at what...

2. The market for air conditioners has: Total Cost: TC = 20 + 10Q +(3/4)Q2 Marginal...

2. The market for air conditioners has: Total Cost: TC = 20 + 10Q +(3/4)Q2 Marginal Cost: MC = 10 + (3/2)Q Marginal Revenue: MR = 1,010 – 0.5Q Demand: Q = 4,040 – 4P 2a. If a monopoly controls the market, calculate the equilibrium price and quantity of air conditioners. 2b. Calculate the monopoly profits from part a. 2c. If the government imposed a tax of $80 per air conditioner that the monopoly sells, calculate the equilibrium new price...

1. The following equation describes a firm’s total cost. TC = 500 + 10Q + Q2...

1. The following equation describes a firm’s total cost. TC = 500 + 10Q + Q2 a. If the firm is a price taker and other firms in the industry sell output at a price of $100, what price should the manager of this firm put on the product? b. What level of output should be produced to maximize profits (or minimize losses)? c. Should the firm keep producing or shut down? Hint: Is P ≥ AVC? d. Calculate profit...

A3-10. Imagine a firm with the short run cost structure: Total Cost (TC) = 9 +...

A3-10. Imagine a firm with the short run cost structure: Total Cost (TC) = 9 + q 2  Marginal Cost (MC) = 2q. (a) Write out expressions for total fixed cost (FC), total variable cost (VC), average variable cost (AVC), and average total cost (ATC). Be sure to show your work. (b) At what quantity is AVC at its minimum (at what AVC level)? At what quantity is ATC at its minimum (at what ATC level)? (c) Given your...

When you have the total cost (TC) curve and the total revenue (TR) curve of a...

When you have the total cost (TC) curve and the total revenue (TR) curve of a company, think about a situation with a single break-even point an another situation with two break- even points and clearly explain what cause the difference is. Think about a linear programming model with multiple optimal solutions and clearly explain what cause this to happen? A graph cannot be your explanantion.

In a 10q + q2 and a marginal cost curve of M C = 10 +...

In a 10q + q2 and a marginal cost curve of M C = 10 + 2q if it produces a positive quantity of output q. The market price is $50. Which statement is true? (a) Each firm produces 20 units of output; the industry will require entry to reach its long-run equilibrium (b) Each firm is producing 25 units; as the firm is making short-run profits the industry is not at its long-run equilibrium (c) Each firm produces 20...

In the short-run, in comparing the change in total variable cost (TVC) and total cost (TC)...

In the short-run, in comparing the change in total variable cost (TVC) and total cost (TC) associated with an additional unit of output, Answers: a) the change in TC is greater than the change in TVC. b) no generalization can be made because of change in TFC. c) both are equal to MC. d) the change in TVC is greater than the change in TC. The short-run marginal product of a variable input has an inverse relationship with the: Answers:...

Consider a firm with a short run Total Cost (TC) given by TC=2000 + 1000Q -...

Consider a firm with a short run Total Cost (TC) given by TC=2000 + 1000Q - 40Q2 + Q3 . What is the firms marginal cost? What is firm's shut down price?

Question