1.2 Exercise 2Consider a competitive firm with total cost functionC(q) = F+ Bq +3for all q > 0, and C(0) = 0, where F, B, 1, ô are positive parameters.Question 1. Compute the marginal cost function C' and the average costfunction AC.Question 2. Determine the short-run supply function of the firm wheny = 0.Question 3. Compute qmin, the quantity minimizing AC(q): (a), wheny = 0, and (b) in the case F = 0 and y > 0.Question 4. Give the conditions on parameters under which the profitII(p) of the competitive firm is nonnegative at price p (still assuming y = 0).

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Answered: .2 Exercise 2 Consider a competitive…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Anita's firm has a total variable cost of 2q2-85q and total fixed cost is 200 1. find the firm total cost function 2. use quadratic formula to find the quantity Q 3. what is the value of Q at breakeven 4. show using graph wheather the firm total cost has maximum or minimum turning point
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Suppose that a firm has increasing marginal cost, and a positive fixed cost. What happens to minimum effcient scale if the xed cost increases
1. Micky's auto mechanic shop has a daily total cost represented by: C = 98 + 2q + 2q². Shop's marginal cost is given by: MC = 2 + 4q, where q is the number of repaired cars. a. b. Derive an expression for average cost. Find the quantity range where the shop experientes the economies scale (Hint: scale economy AC index is given by: S = MC). At what production level are scale economies exhausted??
Suppose honda's total cost of producing four cars is $225,000 and its total cost of producing five cars is $250,000. a. What is the average total cost of producing five cars? b. What is the narginal cost of the fifth car? c. Draw the marginal- cost curve and the average-total-cost curve for a typical firm and explain why these curves cross where they do.
Consider the graph below for a firm. At point T, we know that the firm K TC = Total Cost; Q=f(K, L); 100 E 70 Q, =100 TC, L 60 80 A. Is a cost minimizer but not technical efficient. B. Is a cost minimizer. O C. Is technical inefficient and a not a cost minimizer. O D. Is technical efficient but not a cost minimizer. E. None of the above.
Question 2 The market for hand-made bar soaps in Vancouver is perfectly competitive. The marginal cost function for each (identical) firm is given by MC = 2QS + 4. Also suppose the short run cost functions are the same as the long run cost functions. If the market price P is $10. What is the individual firm's MC? a) 8 b)14 c)10 d)12 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
You learn that a firm's average total costs (ATC) and average variable costs (AVC) are exactly equal. What does that mean? O Marginal cost is zero O ATC and AVC must be equal to zero O Average fixed costs (AFC) are zero O Economic profit is positive O Economic profit is negative
8. Suppose a firm has following total cost function: TC-900+4Q+Q². Find the fixed cost (FC), total variable cost (TVC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) for this firm.
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.2 Exercise 2 Consider a competitive firm with total cost function C(a) = F + 3q+ 3 or all q > 0, and C(0) = 0, where F, 3, 7, 6 are positive parameters. Question 1. Compute the marginal cost function C' and the average cost unction AC.