COURSE: ECONOMY A company has a total cost function TC = 80+3q+2q2 and a marginal cost function MC = 3+4q. If market price is P = $30 and it is producing 10 units: (a) Is firm maximizing its profits? b) What quantity should it produce in long run? Hint: MC= ATC c) Construct a table with all costs. d) Plot profit maximization points in short and long run.

Q: e) The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: The short-run cost function of a company is given as: Total Cost: TC = 200 + 55q where; TC = total…

Q: : The total variable cost of firm X is 100 and its total fixed cost is 20 TL. The firm produces 40…

A: Given information: TVC = 100 TFC = 20 Q = 40 We need to find AFC  The formula for AFC = TFC÷Q

Q: Q)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the…

A: Answer: Given, Price = $650 per unit Total cost function: TC=1q^3−40q^2+740q+1600 Quantity Total…

Q: The curves in this figure reflect information about the average total cost, average fixed cost,…

A: Answer to the question is as follows:

Q: The above cost curves are for a firm producing flour, which is measured in pounds.  1. What is the…

A: A cost curve is a graph that shows the costs of production as a function of the overall quantity…

Q: b Now suppose Q = 2L +3K. Let the market price of L be w = 5 and the price of K be r = 4. Let both L…

A: b) Suppose the production function is Q = 2L + 3K, where Q represents the output quantity, L is the…

Q: 1. The total cost of producing a quantity q is C(q). The average cost a(q) is given in figure below.…

A: C’ (q 0) is the marginal cost for any q 0. The line t 2 has slope twice than that of line t 1.

Q: c. If berries sell for $60 per crate, how many berries should produce?(Hint: must first find minimum…

A: Total cost is the sum of fixed cost and variable cost.  Fixed cost are the cost that doesn't change…

Q: In a furniture market, if a furniture company is analyzing the short run total costs, one of the…

A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: 1. Suppose the total cost to a firm of producing a quantity q of some commodity is C(q) = 490 + 20q…

A: Given: C(q) = 490 + 20q + 0.1q2 To find out marginal cost i.e. MC(q), take the first order…

Q: 6. Suppose a firm's total cost is given by TC = 200+ 2Q- .006Q² +.000020³ (a) What is the firm's…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost at…

Q: Assume that the above cost data is for a perfectly competitive firm. Using this data answer the…

A: Answer to the question is as follows :

Q: 1. If the cost function of producing a commodity is: 40 + 50x + Vx2 +110 C (x) == where x represents…

A: The given cost function is: C(x) = 40 + 50x + VX2 + 110 Assuming V is a constant greater than 0 To…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: TVC = TC - TFC = 4,000 - 2,000 = $2,000

Q: a. Calculate the marginal cost and average variable cost for each level of production. b. How much…

A: A perfectly competitive market is a hypothetical market which shows following characteristics:…

Q: Construct a short-run supply schedule for the firm and indicate the profit or loss incurred at each…

A: Given information

Q: Consider a total cost function TC(Q) = 90 + 40Q +1.5Q^2 for a firm in a competitive market. In this…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

Q: The figure below displays the short-run marginal cost and short-run average cost curves for a firm.…

A: In short run ,  In perfect competition , firm will produce where P = MC  P is the price  MC is the…

Q: d) If James decides to make a total of 51rolls and pies per day and charges different prices as…

A: In order to optimize the production bundle when the firm charges different prices, we shall…

Q: e) In the following diagram of cost curves, how many short runs have been created? State and explain…

A: Average short run curve: It refers to the curve which is a U shaped curve. It decreases the average…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: The total revenue curve of a firm is R(x) = 32·5x – 12x2 and its average cost A(x) =  x²  – 13x + 20…

A: It is given that                R(x) = 32.5x – 12x2          (Revenue Function)               A(x) =…

Q: An economist estimated that the cost function of a single product firm is given by C (Q) = 100…

A: In economics, a cost function refers to a mathematical equation that represents the total cost of…

Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total…

A: Total cost is the total expenditure of the producer in the production process. The cost includes the…

Q: 1.  It costs $25,000 to build 30 refrigerators. It costs $30,000 to build 40 refrigerators.…

A: Cost: It is the value of goods and services in terms of money.

Q: Consider the following Table: Q TC 100 140 90 150 80 160 3 70 170 60 180 5 50 190 6. 40 200 30 210 8…

A: Average total cost or ATC is calculated by dividing total cost (TC) by quantity (Q). Marginal cost…

Q: Exercise 3 A firm has a long-run cost function Cl(y) = y 3 − 10y 2 + 30y. (1) Derive the firm’s…

A: Long-run costs refer to the expenses incurred by a firm when all inputs or factors of production are…

Q: A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find…

A: Our goal is to determine the profit-maximizing production level, calculate the associated profit,…

Q: Suppose a firm faces a short-run total cost function of SRTC = 20 + 3Q + 2Q2 . a) Write the firm’s…

A: Marginal cost is the additional cost incurred in producing an extra unit of a good. Average total…

Q: The short-run marginal and average cost curves for a firm are displayed below. When q= 2 and q= 6,…

A:

Q: 2. Let a firm's short run total cost curve be given by c(y) = 10+10y-y²+0.25y³; therefore: MC = 10 –…

A: Short run supply curve"it is the portion of its supply curve that lies above its average variable…

Q: The table below shows the short-run cost data of a perfectly competitive firm that produces plastic…

A: The profit maximizing output level arises at quantity level where the marginal revenue equals the…

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: 12. The monthly total cost of production for Flavell Corp., is related to the level of output Q in…

A: The objective of the question is to find the marginal cost of the total cost curve for Flavell Corp.…

Q: 5. Consider the cost for a firm as described by the function: 3000 C(q) = 200 + q². 21 a. What are…

A: The objective of the question is to understand the cost structure of a firm, derive the average and…

Q: . A firm’s production is represented by the following function: Q = L0.4 K0.6 . The rental rate of…

A: The link between the physical production and the numerous production parameters, or the output to…

Q: (c) If market price is equal to $10, how much will the firm produce? (d) At that price, what is the…

A: cost of the production is the amount spend on factors of production used in to produce the output.…

Q: Given cost and price (demand) functions C(q)= 110q + 44,600 and p(g) = - 2q + 860, what is the…

A: The increase in income that occurs from the sale of one additional unit of output is known as…

Q: Assume a firm's short-run cost function is given by the following expression: C(q) = 2+q+q2 If the…

A: The producer is in equilibrium at the point when MC=MR, at this point the value of producing an…

Q: A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 =…

A: Short run is the time period having at least one factor of production fixed.