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A: Given Information Demand function Q-90+2P=0 Average cost function AC=Q²-8Q+57+2/Q
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Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…
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A: TVC = TC-TFC where TFC = 100. So TVC = 25q -8q2 + 2q3
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A: Given : TC(q) = 10 + q^2/10 MC(q) = q/5 p = 10
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A: Total revenue, R (q) = 40q - 12q2 Average cost, A(q) = 1/30q2 - 12.85q +20 + 400/q
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Q: Each firm in a competitive market has a cost function of: C= 25 + q°, so its marginal cost function…
A: In the long run, firms in perfect competition charge price equal to minimum average total cost.
Q: If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm…
A: In the perfect competitive market, a firm 's supply curve is given by its marginal cost curve. This…
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Q: The total cost of a firm is TC(Q)=3Q2+4Q+37. Suppose its current output level is 7. Find its ATC.
A: Total cost measures the overall cost incurs in the course of production.
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Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q…
A: total revenue (TR) is defined as the total quantity(q) of commodity produced multiplied with its…
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- Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC₁ and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?4. A vertically integrated automobile company has an upstream engine division and a downstream assembly division. The demand for the company's cars is given by Q = 20-P. Each car requires one engine. The downstream division's total cost of assembling cars is TCD(Q) = 4Q. The upstream division's total cost of producing engines is TCv (Q) = Q². (a) Suppose that there is no outside market for engines. What is the price and quantity of cars produced by the company? (b) Suppose that there is no outside market for engines. What should be the transfer price for engines? [Hint: the transfer price of an engine should equal the marginal cost of engine production at the optimal quantity.] (c) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the price and quantity of cars produced by the company? (d) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the quantity of engines that the company buys or…A major software developer has estimated the demand for its new personal finance software package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+ 25Q. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? 4. a. b. C. d. e. ANS: 90% 100% 20% 40% 250%
- 40 - 2P and its total cost 5. A firm's demand function is Q function is defined as TC = 100 + 2Q + 0.25 Q? . Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum level of output?π 4/ Suppose that the total cost of a firm TC(Q) function =:TC(Q)=75Q+800And the demand function = :P=600-5Qa) Find the level output (Q) that maximizes the profit level (π).b) Find the value of the maximum profit (π).A firm's demand function is Q = 16 -P and its total cost function is defined as TC = 3 + Q+ 0.25Q² Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum?
- The figure deplcts the demand curve for Beautiful Cars, and the marginal cost and Isoprofit curves of the car manufacturer. The quantity and price at polnt E are (Q*. P*) - (30, 5,500). Suppose now that the firm Increases the price to 5,550 and chooses the corresponding level of output from the demand function at the new price. Based on this Information, whlch of the following Is correct? 8,000 Demand curve 100 Quantity of cars, O O The firm will sell 30 cars at the higher price. O The firm's profit remains the same. O The quantity of cars produced reduced. O Tho firm's profit is now incroasod Price, Marginal cost ($)2. A firm has a cost function of C = 1000+20Q + 1/10Q2 and has a demand function as shown in the graph below: 100 90 80 70 70 60 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 Quantity (Q) -P (demand) a) Estimate the firm's demand function. You may assume that the slope is a whole number, and the intercept is a multiple of 10. (1 mark) b) Find the firm's revenue function. You do not need to draw it. (2 marks) c) Find the marginal revenue function, and draw it on a copy of the graph. (3 marks) d) Find and draw the marginal cost function. (3 marks) e) Use your results from parts (c) and (d) to find the profit-maximising level of output. (3 marks) f) Find the market price at this level of output. (2 marks)FITnest is one of the few fitness centers serving the greater area. The gym has been open for 3 years. It charges a flat price of $25 per visit to its clients, and the firm’s current average cost of production is $10 per visit. (You may assume that average cost has the “traditional U-shape”.) a) The owners of the gym heard you are studying economics, and they want some advice on how they could possibly increase their profits through price discrimination, which is a concept they have heard of but do not know much about. Provide an explanation of what price discrimination is and give them an example of how they could use group pricing in their climbing gym business. Explain how group pricing works to increase their profit. b) Given the current situation in the market for fitness in the area, would you expect to see competitors enter or exit the market? Explain. c) Given the current market conditions, what would you predict to observe in the long run with respect to the demand for…
- 1) What is the maximum profit available to this firm? 2) If the firm finds that its marginal cost is $11, what is the decision of the firm?Suppose firm A’s total cost function is given by c(q) = 3q^2 + 95. If the equilibrium price is $24, what is the profit maximizing quantity of output? (a) 4 units (b) 2 units (c) 0 units (d) 6 units (e) 10 unitsThe demand and total profit function, P(x) for rooms in a hotel are given as follows. 3x = 600 - P P(x) = 450x – 3.5x2 - 4000 Where p is the price in ringgit per room and x is the quantity of room rented. Determine the marginal cost when 2 rooms are rented