Using time-series data, the demand function for a profit-maximizing monopolist has been estimated as Qd 142,000-500P+ 6M -400PR where Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as: MC 200-0.024Q+0.000006Q2 Total fixed cost is forecast to be $500,000 in 2016. What is the value of average variable cost at the optimal level of output? $76 $96 $232 $196 $112

Using time-series data, the demand function for a profit-maximizing monopolist has been estimated as Qd 142,000-500P+ 6M -400PR where Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as: MC 200-0.024Q+0.000006Q2 Total fixed cost is forecast to be $500,000 in 2016. What is the value of average variable cost at the optimal level of output? $76 $96 $232 $196 $112

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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No chatgpt used i will give 5 upvotes typing please
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