Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q    What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function? Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Compute Bitcom’s short-run supply curve for its product. Provide a 100 word summary of how this can be applied to the current economy. Show Calculations and can it be done in Excel?

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: The total revenue curve of a firm is R(q) = 40q – 12q² and its 400 average cost A(q) =9 – 12.85q +…

A:

Q: perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates…

A: Given, Price = $110 TC = 70 + 14Q + 2Q2 MC = 14 + 4Q

Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…

A:

Q: A local microbrewery has total costs of production given by the equation TC=500+10q+5q^2. This…

A: Total cost equation,TC=500+10q+5q2Marginal cost equation, MC=10+10qDemand function, Qd=105-12P

Q: The total cost function of a perfectly competitive firm is TC=100+10*Q+5*0^2 For what time period…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The…

A: In a perfectly competitive market, firms do not have any market power so price is constant. Price is…

Q: Consider a firm's short-run and long-run supply curves, pictured below. In the short run, one of the…

A: The marginal cost (MC ) refers to the rise in production costs calculated by the production of…

Q: part 1. Leave 'r' and 'w' as constants. Solve the cost minimization problem to find L*(q) and K*(q).

A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…

Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…

A: The rise or decrease in the cost of producing one more item or serving one more client is referred…

Q: Assume a competitive firm faces a market price of $70, a cost curve of! C=0.002q + 30q + 750, MC =…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: Suppose that each firm in a competitive market has the following cost structure: TC=100+q². MC=2q…

A:

Q: Suppose that the long run cost function of a price taking firm is given by C(q)=12+3q2+3q. Solve…

A: A firm in the long run would be earning at a higher level than the cost they are indulging. It means…

Q: The demand curve and supply curve for carpet cleaning in the local market are currently as follows:…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: What is the value of the firm's average fixed cost (AFC)of producing 10 units of output?   What is…

A: The average fixed cost refers to the output’s per unit fixed cost. The average variable cost refers…

Q: The Emerald Company, a firm in the perfectly competitive custom jewelry industry, asks you for your…

A: First, we will find all the costs from the given information. Quantity is 550 units Total Revenue is…

Q: The inverse demand for shampoo is P = 30 – 0.03Q, where P is the price per bottle in dollars and Q…

A: Step 1:Inverse demand refers to the relationship between the price of a good or service and the…

Q: Economist T. Yntema estimated the short-run total cost function of the United States Steel…

A: Total cost is the sum of fixed cost and variable cost.  Fixed cost is that part of the total cost…

Q: cost function of a single product firm is: C(Q)=1.9+4.5Q+8.2Q^2 If all firms have the same cost…

A: In long run perfectly competitive from operates at following point; P= MC = AC. C = 1.9+ 4.5Q+ 8.2Q²…

Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…

A: Total cost is the cost of producing all the units of goods.  Marginal cost is the cost of producing…

Q: The relationship between the firm's average variable, average total, and marginal cost curves above:…

A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: Rhing a small firm, and you have an estimate of both your cost function and your demand curve. Your…

A: Total Revenue: The total revenue is the product of price and the quantity. TR = P * QProfit: The…

Q: disregard the portion of the supply curve that corresponds to prices where there is no output since…

A: Demand, or the desire for a commodity, is defined as a person's willingness to buy a specific…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: The firm in the short run has fixed resources and maximizes profit or minimizes loss is done with an…

Q: onsider a firm with the following cost function:   C (q) = 4q^2 + 100   Find the long-run supply…

A: The long-run supply is the supply of goods available when all inputs are variable. Here, we…