A price-setting firm faces a downward-sloping demand curve described by the equation P = 100 - Q. The firm can produce additional units of output at a constant marginal cost of 20 and its total fixed costs are 300. Faced with these revenue and cost conditions, if the firm sets production at Q = 50 we can deduce that: A output is below the profit-maximising level the firm is incuring losses the firm is maximising total profits I do not want to answer this question. E the firm is maximising total sales revenue F total variable cost is less than total fixed cost

A price-setting firm faces a downward-sloping demand curve described by the equation P = 100 - Q. The firm can produce additional units of output at a constant marginal cost of 20 and its total fixed costs are 300. Faced with these revenue and cost conditions, if the firm sets production at Q = 50 we can deduce that: A output is below the profit-maximising level the firm is incuring losses the firm is maximising total profits I do not want to answer this question. E the firm is maximising total sales revenue F total variable cost is less than total fixed cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a sunk fixed cost of $108 per week. Its marginal cost is MC = 6Q². a. What is the firm's supply function when the $108 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q = (P/6) 0.5 for Pz $| b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. Q = (P/6) 0.5 for Pz $ 216 ✪ 0
Please provide answer in 1 hr please
Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a homogenous product) is given by the following equations respectively: Qd = 50 − P Qs = 1 + 3P The typical firm’s total cost is given by the following equation: TC = 10 + 0.5Q2 + 5Q What is the equilibrium price and quantity in this market? What is the firm’s MC function? What is the MR function? What is the profit maximizing level of output for the firm? How much profit is this firm earning? Show it graphically Is it short run or long run? Explain!
Firms in a competitive market can sell as much as they like at a market price of $16. The cost function for each firm is TC = 50 + 4Q +2Q². The associated marginal cost function is MC = 4 + 4Q and the point of minimum average cost is Q = 5. How much profit is each firm earning?
Economics
A) Find the price function and then the TR function. B) Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. C) What positive value of Q will maximize total profit? Remember: setting MR = MC and solving for Q will give you the Q that maximizes total profit. The value of Q you get should not be zero or negative.
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. The market price is $26. Instructions: Use the tool provided (Pt. A) to identify the profit-maximizing output. Then use the tool "Profit" to draw the area of profit (or loss) that occurs at this level of output. Position this rectangle by dragging on the vertices. Price/Cost ($) 50 r Tools MC 40 Pt. A Profit ATC 30 AVC 20 10 10 20 30 40 50 Quantity Instructions: Round your answer to the nearest whole number. Use a negative sign if necessary. At the profit-maximizing level of output, average total cost is $ and profit is $
A firm is a perfectly competitive producer and sells two goods X and Y, has demand function 0.1Px – 1.2 + 0.2X = 0 and 10P, – 320+40Y = 0 respectively. The total cost of producing these goods is given by : TC = x2 – 2XY – Y Find the maximum profit and the values of Q1 and Q2 at which this is achieved.
Consider a total cost structure of TC = 60 + 5Q² and a marginal cost structure of MC = 10Q. What is the economic profit of a profit-maximizing firm in a competitive market if the price is $470?