Which of the following statements is correct with respect to profit maximization? PLEASE EXPLAIN   A. If the total revenue and the total cost functions are linear functions, and the total revenue function is above the total cost function, the firm can produce as many as it wants and there will be economic profits. B. If the total revenue and the total cost functions are linear functions, but the total revenue function is below the total cost function, the optimal output is zero. C. If the total cost function is linear, the total revenue function is quadratic with an inverted U shape, and there are output where the total revenue is greater than the total cost, there is a unique optimal output that maximizes profits D. A and C are correct E. A, B and C are correct

Q: A firm’s marginal cost curve above the average variable cost curve is equal to the firm’s individual…

A: The marginal cost defines the cost that a producer incurs to produce an additional unit. After a…

Q: Please explain every part in details  A competitive firm has the following short-run cost function:…

A: A competitive firm is an economic unit that produces goods or services and competes in the market…

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: demand curve faced by the firm is: P = 230 - 4Q where Q = Q1 + Q2 total cost equations for the two…

A: MC (marginal cost) is the cost incurred by the firm when an additional unit of a good is produced.…

Q: Suppose the Sunglasses Hut Company has a profit function given by P(q) = 0.01q2 + 3q - 21, where q…

A: (a) Marginal Profit tells the change in profit due to an additional unit of quantity.…

Q: . Suppose a firm has the production function f (x1, x2) = 5x,x2. Find the firm's long-run…

A: A firm will maximise its profit at a point where marginal product is equal to real wage of two…

Q: Q. 4 For a firm with a Total Cost function TC = C(Q), recall that the definitions of Marginal Cost…

A: Marginal cost of production is the amount of dollars incurred by a firm in producing an additional…

Q: n(q) = R(q) - C(q) = 120q- (325 +20q + 10g?). What is the positive output level that maximizes the…

A: Question) We will maximise profit by, Differentiating the profit function with respect to price and…

Q: [F] The profit function of a business firm is T = f(q) = -q³ + 6q² – 11q – 50. ,3 | (i) What output…

A: We have given the profit function i.e., π = -(1/3)q3 + 6q2 - 11q - 50 In order to find the value of…

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: Using the following table, for each price level, calculate the optimal quantity of units for the…

A: A competitive market is a structure where no single consumer or producer has the ability to…

Q: Find the marginal profit. C(x)=4x^2; R(x)=x^3+5x+15

A: Profit=Revenue-CostProfit=(x3+5x+15)-(4x2)Profit=x3-4x2+5x+15

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: A competitive firm has the following short run cost function TC= q° - 6q? + 30q + 80. What is the…

A: Here, cost function is given as: TC=q3-6q2+30q+80 Using the given cost function, Fixed cost would be…

Q: You sell items. Your marginal revenue and marginal cost are given by the formulas:  MR (q)=…

A: The firm would involve the cost of the production of the goods and services to produce goods and…

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: 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: For the following, decide whether you agree or dis-agree and explain your answer: a. A firm earning…

A: A perfect competition is the form of market that consist of large number of buyers and sellers,…

Q: Find the marginal cost, marginal revenue, and marginal profit functions. C(x) = 4x; R(x) = x³ + 5x +…

A: Marginal cost is the additional cost incurred by a firm by producing one extra unit and the…

Q: can you  answer part iv and v?

A: For question number 4 and 5, Total revenue TR = 40q – 12q2 AC(q) = 1/30 q2 – 12.85 q + 20 + 400/q…

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: A firm's total cost function is c(y) = y² + (a +ß)y + 100ß. p = $50. Find the best output level, y*.

A: Given  Cost function: c(y)=y2+(α+β)y+100β           ..... (1) Price p =$50 We have to find the best…

Q: The intersection of a firm's marginal revenue and marginal cost curve determines the level of output…

A: A firm maximises its profit when the marginal revenue is equal to the marginal cost (MR=MC).

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: Suppose the cost functions for producing goods X and Y are given respectively by: TC(X) = 100 + 2X…

A: Economies of scope is an economic concept that the unit cost to produce a product will decline as…

Q: Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and…

A: Part a: Average Cost = Total Cost/ Quantity Marginal Cost = dTC/dQ TC = 3Q3+2Q2+6 Average Cost =…

Q: gumb d. Graph the average and marginal cost curves for gumballs assuming v = 3, w = 5.

A: Average cost AC is given by the ratio of total cost by the total quantity. Marginal cost is 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: A firm's profit function is (q) = R(q)-C(q)=100q- (190+40q+10q²). What is the positive output level…

A: A firm maximizes profit by producing output at a level where the Marginal Revenue (MR) is equal to…

Q: rue? Marginal cost is equal to marginal revenue. O This is the quantity a firm would choose to…

A: AVC=TVC/Q MC= change in TC/ change in Q

Q: 3. A manager has estimated the average variable cost (AVC) function for his firm to be: AVC= 60 -…

A: Answer; Level of output at which production is most efficient is 6.

Q: 1. A company has the following average income (demand) curve: P=100-0.01Q. Where Q is weekly…

A: Given: Average income (demand) curve: P=100-0.01Q Cost function : CT = 50Q + 30,000

Q: A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may…

A: The objective of the question is to estimate the firm's demand function, find the firm's revenue…

Q: Show the effect of diminishing returns on the marginal and average cost curves of a firm in the…

A: diminishing returns is a  financial regulation expressing assuming one contribution to the…

Q: 4. Completion of the marginal cost function by selling MC = Q2-20Q + 75. A. Determine the…

A: Cost refers to all the expenses that incur in the process of production. Marginal cost refers to the…

Q: For the pizza seller whose marginal, average variable, and average total cost curves are shown in…

A: In the given market, price is constant so it will be equal to marginal revenue. At profit…

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

A: Total cost (TC) at zero level of out is the total fixed at cost at each level of output. Thus, fixed…

Q: The water bottle manufacturing company in Muscat facing the following demand function P=1000-10Q.…

A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…