Assume that the function TC = Q² – 3Q + 500 represents a perfectly competitive firm's total cost. Calculate and verify the most profitable level of its output (0) when its price is P = 67. %3D
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![Assume that the function TC = Q² – 3Q + 500 represents a perfectly competitive firm's total cost.
Calculate and verify the most profitable level of its output (Q) when its price is P = 67.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F371df9e0-45d9-46e0-93d2-fe35c9bbab82%2F1cec874a-6f3e-4a61-8ab9-5317c8c8042f%2Fg1dmrik_processed.png&w=3840&q=75)
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- A competitive firm's cost of producing q units of output is TC=18+4q+q^2 Its corresponding marginal cost is MC=4+2q The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, …, 15, where the columns are q, TR, TC, TVC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level of output or should it shut down? Explain briefly. Suppose the competitive price declines to p = $12. Repeat the calculations of part a. Should the firm shut down?Suppose that the finance department of our favorite company, TVZ R US, determines that the total = 500+ 2x. The marketing department's cost of producing a amount of televisions is C (x) estimate of the demand function for televisions has not changed and remains p = 10 -0.01x. A) Write an equation for the profit of this company. B) Use the first derivative to find the marginal profit of the function you wrote in part A. C) Compute the second derivative and determine if the value you found in Part B is an absolute maximum or absolute minimum. D) Find the maximum profit of the company. E) At what price are profits maximized?A firm's profit function is x(q) = R(q)- C(q)= 180g - (685 + 20g + 10g) What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q=. (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $. (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is S. (Enter your response as a whole number.) Profit (x) is S. (Enter your response as a whole number and include a minus sign if necessary.) The firm should produce in the short run.
- Consider a company that operates in a competitive market, with a typical set of cost curves (Marginal Cost, Average Variable Cost, Average Fixed Cost and Average Cost with typical formats of Microeconomics theory). Consider further that Marginal Costs coincide with Average Total Costs when the firm's output is 200 units of output, at a market price of 50. If market prices fall to 40, the company will produce 180 units of product to maximize its profit. If at this point the Average Fixed Costs per unit of output equals 27 per unit of output, what are your recommendations for this company in the short term? And in the long run?A firm's profit function is T(q) = R(q) – C(q) = 40q – (35 + 20q + - 10q²). What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q =. (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $ (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is $ - (Enter your response as a whole number.) Profit (T) is $ (Enter your response as a whole number and include a minus sign if necessary.) The firm should produce in the short run.Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…
- 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.A firm's profit function is (q) = R(q) - C(q) = 140q-(410+20q+10q²). What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q = (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $. (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is $ Profit (x) is $. (Enter your response as a whole number and include a minus sign if necessary.) The firm should in the short run. (Enter your response as a whole number.)Total cost function in competitive firm is TC = 27+ 3Q2. If firm gets normal profit please find the average total cost of this firm.
- The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.Consider a profit-maximizing, perfectly competitive firm that faces a market price equal to $10. Let Q* = 10 denote the (positive) quantity that satisfies the equation P = MC(Q*), and suppose that AVC(Q*) = 5, ATC (Q*) = 8, and MC(Q*) = 10. Then the firm's maximized profits equal: Ⓒ$0 $20 $30 $50 $80 $100 Show Transcribed Text Is my answer correct?The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answer
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