AVC = 10-0.03q+0.00005q^2 ATC = 10-0.03q+0.00005q^2 +100/q and MC = 10-0.06q+0.00015q^2 Answer the following questions in EXCEL: 1 At what value of q is AVC at its minimum? (Hint: The easiest way to calculate this value is to solve AVC - MC = 0 for q.) 2 At the above output level what value does AVC take? 3 If the forecasted price of the firm's output is $10 per unit: a How much output will the firm produce in the short run? b How much profit (loss) will the firm earn)? 4 If the forecasted price is $7 per unit: a How much output will the firm produce in the short run? (Keep only 2 decimals) b How much profit (loss) will the firm earn)? (Keep only 2 decimals)
AVC = 10-0.03q+0.00005q^2 ATC = 10-0.03q+0.00005q^2 +100/q and MC = 10-0.06q+0.00015q^2 Answer the following questions in EXCEL: 1 At what value of q is AVC at its minimum? (Hint: The easiest way to calculate this value is to solve AVC - MC = 0 for q.) 2 At the above output level what value does AVC take? 3 If the forecasted price of the firm's output is $10 per unit: a How much output will the firm produce in the short run? b How much profit (loss) will the firm earn)? 4 If the forecasted price is $7 per unit: a How much output will the firm produce in the short run? (Keep only 2 decimals) b How much profit (loss) will the firm earn)? (Keep only 2 decimals)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
and
MC = 10-0.06q+0.00015q^2
Answer the following questions in EXCEL:
1 At what value of q is AVC at its minimum? (Hint: The easiest way to
calculate this value is to solve AVC - MC = 0 for q.)
2 At the above output level what value does AVC take?
3 If the
a How much output will the firm produce in the short run?
b How much
4 If the forecasted price is $7 per unit:
a How much output will the firm produce in the short run? (Keep only
2 decimals)
b How much profit (loss) will the firm earn)? (Keep only 2 decimals)
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!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 7 images
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education