1. Suppose a firm has the following total cost function: TC = 100 + 4q^2 a....

1. Suppose a firm has the following total cost function: TC = 100 + 4q^2

a. What is the minimum price necessary for the firm to earn profit? You must explain

your reasoning and process as to how your found the price you found.

b. Below what price will the firm shut down in the short run?

Expert Solution

Rahul Sunny answered 2 years ago

The total cost function of a perfectly competitive firm is TC= 12+2q^2+4q. What is the firm's...

The total cost function of a perfectly competitive firm is TC= 12+2q^2+4q. What is the firm's optimal quantity at a market price of $12? If over time, the firm could exit and not pay its fixed cost, what would the optimal quantity be?

Suppose a firm has the following total cost function TC = 200+2q2 . If price equals...

Suppose a firm has the following total cost function TC = 200+2q2 . If price equals $30, what is the firms’ profit maximizing output? What are its short-run profits?

Suppose the demand of the good is P = 10 - Q. A monopolist's total cost is TC = 2 + 4Q.

Suppose the demand of the good is P = 10 - Q. A monopolist's total cost is TC = 2 + 4Q. What's the optimal price and quantity of the monopolist?calculate the monopolist's profit (or loss)also calculate the deadweight loss from monopoly

Suppose that a firm’s short-run total cost function is STC= 0.1q2 + 4q +100. Will the...

Suppose that a firm’s short-run total cost function is STC= 0.1q2 + 4q +100. Will the producer surplus at P=$15 be $302.5? Suppose that a firm is price taker. If the price is equal to marginal cost, then the profit is being maximized. If a firm wished to maximize profit, it will always reduce output if wage rates rise. If a competitive firm's price is below its marginal cost, an increase in production will usually decrease profits. A profit‑maximizing firm...

Suppose in the short run a perfectly competitive firm has the total cost function: TC(Q)=675 +...

Suppose in the short run a perfectly competitive firm has the total cost function: TC(Q)=675 + 3q2 where q is the firm's quantity of output. If the market price is P=240, how much profit will this firm earn if it maximizes its profit? b) how much profit will this firm make? c) Given your answer to b), what will happen to the market price as we move from the short run to the long run? d) What is the break-even...

A firm in monopolistic competition has a firm demand curve of P = 130 – Q. The firm cost function is TC = 2 + 4Q. How many units will the firm produce?

A firm produces a product in a competitive industry and has a total cost function TC...

A firm produces a product in a competitive industry and has a total cost function TC = 50 + 4Q +2Q² and MC = 4 + 4Q. At the given market price of $20, the firm is producing 5 units of output. Is the firm maximizing profit ? What quantity of output should the firm produce in the long run?

Assume that a competitive firm has the total cost function: TC=1q3−40q2+720q+2000 Suppose the price of the...

Assume that a competitive firm has the total cost function: TC=1q3−40q2+720q+2000 Suppose the price of the firm's output (sold in integer units) is $700 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.

Suppose a competitive firm has as its total cost function: TC=26+3q2 T C = 26 +...

Suppose a competitive firm has as its total cost function: TC=26+3q2 T C = 26 + 3 q 2 Suppose the firm's output can be sold (in integer units) at $61 per unit. Using calculus and formulas (don't just build a table in a spreadsheet as in the previous lesson), how many integer units should the firm produce to maximize profit? Please specify your answer as an integer. In the case of equal profit from rounding up and down for...

Assume that a competitive firm has the total cost function: TC=1q3−40q2+890q+1800 Suppose the price of the...

Assume that a competitive firm has the total cost function: TC=1q3−40q2+890q+1800 Suppose the price of the firm's output (sold in integer units) is $600 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. STUDENT NOTE: I already know the answer, but can you help me with how to calculate the numbers under Total Cost. I know where 2651 comes from but...

Question