Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and market demand function Qd = 190 – 2P; Q is output and P is market price. (a) Determine the firm’s Total Cost when it produces 120 units of output. (b) Determine the firm’s Marginal Cost when it produces 120 units of output. (c) Determine the firm’s Average Cost when it produces 120 units of output. (d) Find the market price of the firm’s output when it sells 120 units of output. (e) Determine whether the firm makes profit, or loss, at 120 units of output.
Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and market demand function Qd = 190 – 2P; Q is output and P is market price. (a) Determine the firm’s Total Cost when it produces 120 units of output. (b) Determine the firm’s Marginal Cost when it produces 120 units of output. (c) Determine the firm’s Average Cost when it produces 120 units of output. (d) Find the market price of the firm’s output when it sells 120 units of output. (e) Determine whether the firm makes profit, or loss, at 120 units of output.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and
(a) Determine the firm’s Total Cost when it produces 120 units of output.
(b) Determine the firm’s Marginal Cost when it produces 120 units of output.
(c) Determine the firm’s Average Cost when it produces 120 units of output.
(d) Find the market price of the firm’s output when it sells 120 units of output.
(e) Determine whether the firm makes profit, or loss, at 120 units of output.
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