Assume a firm with the following Demand Curve: P = 9,000 – 10Q Total...

Assume a firm with the following

Demand Curve: P = 9,000 – 10Q
Total Cost Curve: TC = 600,000 + 5Q2

   •   What is the Profit-Maximizing Price and Quantity this firm will use? Show work
   •   Is the firm making a profit or a loss? Explain why
   •   Should the firm stay in business or quit immediately? Explain why

• Assume a Total Cost Function of TC = 6455 + 5.3Q + 4.27Q2

   •   Compute the Total Fixed Cost if Q = 10. Show work
   •   Compute the Marginal Cost if Q = 10. Show work.
   •   Compute the Average Total Cost if Q = 10. Show work.
   •   Compute the Average Fixed Cost if Q = 10. Show work.
   •   Compute the Average Variable Cost if Q = 10. Show work.

Expert Solution

Rahul Sunny answered 2 years ago

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