Assume a firm's short-run cost function is given by the following expression:C(q) = 2+q+q²-If the firm can sell each unit of their output at a price of pmaximizing level of output in the short-run?Profit maximizing q =dollars, what is the firm's profit

Marginal revenue (MR) is the extra amount that the seller earns by selling an additional unit of…

Assume a firm's short-run cost function is given by the following expression: C(q) = 2+q+q² If the firm can sell each unit of their output at a price of p = 7 dollars, what is the firm's profit maximizing level of output in the short-run? Profit maximizing q =

Assume a firm's short-run cost function is given by the following expression: C(q) = 2+q+q² If the firm can sell each unit of their output at a price of p = 7 dollars, what is the firm's profit maximizing level of output in the short-run? Profit maximizing q =

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 10E

See similar textbooks

Related questions

Q: Find B 1-03 A = B1-(1+0.12) Given -5 (1+0.-12) 2] + [-CI +1 0.12 A = by 8 [1-0 1-CI+ 1-(1+0.12) 0.12…

Q: An investment of P 270,000 can be made in a project that will produce a uniform annual revenue of P…

A: INTRODUCTION : Investments increases the capital stock, and the amounts of capitals that is…

Q: Zambia like many countries in the sub-Saharan region have run substantial fiscal deficits over the…

A: Introduction The price level is determined by averaging the current prices for all the products…

Q: Which of the following statements is considered a market-value definition? a) We make railroads. b)…

A: Answer:- Market value definition is all about the value that a particular product or service is…

Q: In a city with a medium sized population, the equilibrium price for a city bus ticket is $1, and the…

A: At equilibrium the quantity supplied will be equal to quantity demanded (i.e. Qs = Qd). Qd and Qs…

Q: When a competitive firm triples the amount of output it sells, C O OO its total revenue triples. its…

A: A competitive market is where thare are various no. of buyers and sellers. The competitive market…

Q: 5 What would happen to the equilibrium price and quantity because of the change in question #4? A…

A: There will be rightward shift in supply curve when there is increase in supply without any change in…

Q: Treasury bans Bain and Co. from public sector contracts for a decade National Treasury has banned…

A: A challenge or opportunity must exist for a business to decide on a course of action. The first step…

Q: Fiscal Policy Worksheet Follow these steps: A. Identify if the problem is inflation or unemployment.…

A: The percentage of the labor force that is jobless, available for work, and actively seeking…

Q: A currency depreciates if it buys less of a foreign currency than it did before. The US dollar…

A: We can express the exchange rate in 2 ways A) Price of domestic currency in terms of foreign…

Q: Consider the price-demand equation given by 6,000 - x 1,200 р - Calculate the value of p such that…

Q: Short-run and long-run effects of a shift in demand uppose that the seitan industry is initially…

A: Short-run is a period when some elements of production is fixed and some are variable. Output can be…

Q: What sort of product is alcohol in economic terms if the government wants to restrict consumption of…

A: Actual books, pens, apples, salt, and hats are examples of goods that are normally (but not always)…

Q: Type out the correct answer ASAP with proper explanation of it In the Ultimatum Game, player 1 is…

A: Game theory is known as a strategy that pays different pay-offs to the players. The game might be a…

Q: Which of the following is not a normative statement? a. The military budget should increase at the…

A: Two type of economics are there: 1. Positive Economics - In this economics, predictions are made for…

Q: Suppose that Maria is starting a food ordering and delivery company. Customers order meals online.…

A: In the study of economics, production functions represents the relationship between the quantity of…

Q: Empirical evidence suggests that increases in the minimum wage do not result in reductions in…

A: Minimum wage refers to the government policies to set the minimum limit of the wage rate offered by…

Q: Suppose that market demand is given by ? = 120 − ?/3. The two identical firms in the market both…

A: P = 120 - Q/3 MC = 20 2 Identical firm (therefore Q = Q1+Q2)

Q: Refer to Figure 14-4. When price falls from P3 to P1, which of the following does the firm find? It…

A: A perfectly competitive firm is a price taker, which means the price in the competitive market is…

Q: 4a) What is a SARS report and when is it used? 4b) What are the roles of banks in AML prevention?

A: The banking sector is the spine of the financial markets. Almost all economic transactions are…

Q: US currency currently in circulation includes: a) fiat money which has zero intrinsic value b)…

A: Money is a good which is widely accepted by general consensus as a means of financial and monetary…

Q: Suppose you have a monthly income of $1000, $850 in monthly expenses, and you can put money in a…

A: Intertemporal Budget Constraint: It shows different combination of C1 & C2 which the consumer…

Q: A monopolist knows that in order to expand the quantity of output it produces from 8 to 9 units it…

A: Marginal Revenue is the money a company makes for each additional sale. All in all, it decides how…

Q: Cost leadership strategy A all the above B protects from the bargaining power of buyers defends…

A: In a market, a cost leadership strategy is when a firm is able to generate output at the lowest cost…

Q: How can foreign currency futures be used to speculate on the exchange rate movements, and what role…

A: A foreign currency future otherwise called a future or a foreign exchange future is a futures…

Q: How will each of the following scenarios impact the market for labour The income tax rate is…

A: labor market is the place where labor and employers interact, and their interaction create the…

Q: • Calculate the cost of the market basket for 2011 (using 1 decimal place). • Calculate the cost of…

A: Cost of market basket is the sum of cost of goods contained in a basket Basket quantity is the…

Q: 1. The table below shows expected payoffs (ir $billions) for GM and the United Auto Workers (UAW) as…

A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…

Q: Suppose the private market return is r=20%. The economy has progressive tax system as follows. Low…

A: Any investor has two options whether to invest in a government bond or invest in the private market.…

Q: Suppose the credit market in Triumph, Illinois is described by the schedule shown below. Local…

A: Equilibrium is where demand curve intersects supply curve. Equilibrium interest rate is determined…

Q: The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve…

A: Reserves = $20,000 Checkable deposits = $100,000. The reserve ratio = 20 percent or 0.2% Households…

Q: Duopoly Market for mechanical pencils can be described by the following demand schedule: Price |…

A: Demand Schedule - $6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800 => Fixed Cost = 340…

Q: SODA-COMPLEMENTARY GOOD The price of soda, a complementary good for jelly beans, increases. 9.…

A: Complementing goods are the one which are consumed together , and demand of complementing goods are…

Q: A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts…

A: One of the fundamental analyses in capital budgeting is replacement analysis. Physical…

Q: 1. ) Calculate the composite rate of return i' if the external interest rate 2 -3000 c=10%. Year Net…

A: A rate of return refers to the net gain or loss of an investment within a certain period of time,…

Q: The slope of the PE (planned expenditure) line is always 45 degrees the inverse of the spending…

A: The term "marginal propensity to consume" describes the variation in income brought on by variations…

Q: If the demand is given by the equation Q = 64-5P and the supply is given by QS = 6 + 2P, then the…

A: The price and quantity at equilibrium in the market are determined by the forces of supply and…

Q: Iterative Elimination of Dominated Strategies Exercise 4.2 Consider the following normal form of a…

A: The reduction of strictly dominating tactics throughout time (IESDS) One popular method for solving…

Q: (a) Plot the marginal abatement functions for each firm on separate graphs. (b) Suppose the local…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You are given the following information about aggregate demand at the existing price level for an…

A: A GDP gap refers to the difference between a country's current GDP and its potential GDP, as shown…

Q: The term "supply" in a particular market refers to Question content area bottom Part 1 A.…

A: Ans. The supply in a particular market refers to the total relationship between the quantity…

Q: As a micro economic student, With the use of an illustration derive the backward sloping supply…

A: A backward-bending supply curve of labor, is a graphical representation in economics of the…

Q: Jenny's income is 234. Her utility function is given by U = x+8.5y. Assuming the price of good X is…

A: Utility function shows the relationship between the utility and goods that are consumed. The given…

Q: K0.25 (AL) 0.75, where technology A grows at Given the following aggregate production function: Y =…

A: Given information: Y = K0.25 (AL)0.75 Where Y is the output K is capital A is technology L is…

Q: Which of the below is one of the reasons that the Aggregate Demand curve is downward sloping? The…

A: The total demand curve has been prepared under this perception that the government holds the supply…

Q: Lan's utility function is U(x,y) =6.9 x².9y7.4. If the price of good X is 8.3 and Lan's optimal…

A: The price of good Y can be calculated by equation the price ratio of good X and good Y with Marginal…

Q: Every month, Sam spends 0.7 of his income on gasoline, no matter what the price is. The price of…

A: An inverse demand curve means the price becoming a function of quantity demanded; therefore the…

Q: question 2. this question has three parts; 2a, 2b, and 2c. The Third National Bank has reserves…

A: Third National Bank reserves =$20,000Checkable deposits of $100,000. The reserve ratio = 20 %…

Q: The method of Lagrange was used correctly to find Jerry's optimal bundle. The price of good X is…

A: The utility maximisation point or the consumer equilibrium are other names for the optimal bundle.…

Question

Assume a firm's short-run cost function is given by the following expression:
C(q) = 2+q+q²
-
If the firm can sell each unit of their output at a price of p
maximizing level of output in the short-run?
Profit maximizing q =
dollars, what is the firm's profit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The cost function for Acme Laundry is C(q) = 50 + 30q +q?, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p? The output level at which the firm's profit is maximized as a function of p is q =|- (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.) If p= 60, then Acme Laundry should produce| units. (Enter your response as a whole number.)
A firm's short-run cost function is given by: C(q) = 50 + 10q – 4q² + q³ If the firm can sell each unit of their output at a price of $5 (p = 5), what is the firm's profit maximizing level of output in the short-run? Profit maximizing q
Would a cost function of 0 mean a linear line of supply curve? For example if 10 firms are on the market selling 10 goods and the cost function is 0?
Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is given by p = 14 – 2 q. The quantity that minimizes the average cost function and the corresponding price are g= 22.36 and p= -30.72 a) Why the corresponding price is negative? explain The maximum profit would be -473 b) Why the maximum profit is minus? explain what happens
Joshua owns a small boat and catches lobster off the coast of Maine. His weekly cost function is TC(q) = 40 + 5q + 5q?. He sells his lobsters to the local wholesaler at the market price p (in dollars). a) Find Joshua's short-run supply function for lobsters. (Hit: In this case short-run marginal cost is the same as long-run marginal cost.) b) Find Joshua's long-run supply function for lobsters. c) Find Joshua's shutdown price and Joshua's breakeven price (the price at which profit equals zero). d) Suppose the market price is $30, calculate his profit. What will Joshua do in the long run? Explain. 1
The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?
The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?What would it look like in excel?
The total revenue curve of a firm is R(x) = 32·5x – 12x2 and itsaverage cost A(x) = x² – 13x + 20 + 200; where x is the firm’s output. 30 x(a). Derive an expression, Π (x), for the firm’s profit function. [Hint: Average Cost = Total Cost quantity (Average cost)(quantity) = Total Cost Or Total Cost = (Average cost)(quantity); where, in this case, quantity is output level, x]. (b). Is the rate of change of profit increasing or decreasing when the output level of the firm is x = 10 and x = 30? (c). Determine the level of output for which profit is maximized. (d). What is the maximum profit.
Suppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be - 0.03Q + 0.00005Q² AVC = 10 – Total fixed cost is $600. a. What is the corresponding marginal cost function? b. At what output is AVC at its minimum? c. What is the minimum value for AVC?
Suppose a firm engaged in the illegal copying of DVD’s has a daily short run total cost function given by: STC = (q^2)+25 If pirated DVD’s sell for $20, how many will the firm copy each day? What will its profits be? What is the firm’s short run producer surplus at P=20? Develop a general expression for this firm’s producer surplus as a function of the price of pirated DVD’s.
A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profit
A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s production function is Q = 5*L.6*K.5. Total Cost is TC = PL*L + PK*K = $12*L + $6*K. The objective is to maximize Profit. Find the Profit-Maximizing output. At the profit-maximizing solution, K =?