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?

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Rahul Sunny answered 2 years ago

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?

A perfect competitive firm faces the total cost TC=150+2q2. a. If the market price p=80, how...

A perfect competitive firm faces the total cost TC=150+2q2. a. If the market price p=80, how much output will the firm produce? b. At p=80, what is the firm’s profit? c. Find the quantity of output for which marginal cost equals average variable cost. What does the information tell you about the firm’s decision about whether to shut down?

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.

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...

Q3. Assume that a competitive firm has the total cost function: TC=1q3-40q2+890q+1800 Suppose the price of...

Q3. 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.

A perfectly competitive firm has a short-run total cost function given by: TC = 10 + 2q + 2q2, where q is the amount produced.

Use the following to answer questions (5) and (6):A perfectly competitive firm has a short-run total cost function given by: TC = 10 + 2q + 2q2, where q is the amount produced. Accordingly, the firm’s marginal cost is given by: MC = 2 + 4q; while its average variable cost is given by: AVC = 2 + 2q. Suppose the market price equals 10.[5] In order to maximize profit, this firm should produce ___ units.2410None of the above[6] Producing...

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 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?

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...

A firm has the following production function Y=K0.25L0.25. Total cost (TC) is given by TC=wLL+wKK+ZC, where...

A firm has the following production function Y=K0.25L0.25. Total cost (TC) is given by TC=wLL+wKK+ZC, where wLand wK are prices of the two inputs L and K, and ZC are costs that the firm has to pay regardless of production volume as long as it is operative. a)Derive total cost as a function of output C(Y). Derive marginal cost MC and average cost AC. b)Assume that the firm is one of many identical ones operating on a perfectly competitive market...

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