Question

The firm has the following cost function: C(y)=3y^2+3/4y What is the firm's producer surplus at y=25?...

  1. The firm has the following cost function:

C(y)=3y^2+3/4y

What is the firm's producer surplus at y=25? Round answers to 4 decimal places

Homework Answers

Answer #1

Marginal cost (MC) is the supply function of a firm.

Given,

C = 3y^2 + 3/4y

   = 3y^2 + 0.75y

Therefore, MC is the derivative of C.

MC = (d/dy) [3y^2 + 0.75y]

       = (3 × 2)y + 0.75

       = 6y + 0.75

Now, at (y = 25) the price or MC is,

Price = 6 × 25 + 0.75

        = 150.75

Now, the minimum accepted price should be searched where (y = 0).

Price = 6 × 0 + 0.75 = 0.75

Hence,

PS = 0.5 × Difference in price × Difference in y

     = 0.5 × (150.75 – 0.75) × (25 – 0)

     = 0.5 × 150 × 25

       = 1,875 [Answer]

Note: 0.5 is the part of formula.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A competitive firm has a long-run total cost function c(y) = 3y^ 2 + 675 for...
A competitive firm has a long-run total cost function c(y) = 3y^ 2 + 675 for y > 0 and c(0) = 0. Derive the equation or equations that would describe its long-run supply function.
find y' for the function 1. (y-2)^7=3x^2+2x-2 2. 3y^3+2x^3=3 3.(4y^2+3)^4+3x^5-5=0 4. 4x^2+3x^2y^2-y^3=3x
find y' for the function 1. (y-2)^7=3x^2+2x-2 2. 3y^3+2x^3=3 3.(4y^2+3)^4+3x^5-5=0 4. 4x^2+3x^2y^2-y^3=3x
A firm has the following marginal cost function: MC(y)=2y and fixed costs equal to $16 ....
A firm has the following marginal cost function: MC(y)=2y and fixed costs equal to $16 . If the price of y changes from $8 to $15 what is the change in the firm's profits? (Change equals new minus old) Round your answer to 4 decimal places.
12. A price-searcher firm wants to try a two-part tariff. The firm's marginal cost is a...
12. A price-searcher firm wants to try a two-part tariff. The firm's marginal cost is a constant $3 and it will charge that as the per unit price. To complicate things, the firm has two different groups of consumers. There are 50 consumers who have a demand function given by: qD=18-0.5P. There are also 20 consumers who have a demand function given by: qD=18-0.5P. If the firm charges a fee that is too high, then it may lose all of...
Without Tax With Tax Change Consumer surplus 1+2+3 Producer Surplus 4+5+6 Government 0 Gain of 2+4...
Without Tax With Tax Change Consumer surplus 1+2+3 Producer Surplus 4+5+6 Government 0 Gain of 2+4 Total Surplus 1+2+3+4+5+6 Loss of 5+6 12. What is the consumer surplus after the tax and what changed? a) the consumer surplus is represented by 1, 2+3 was lost b) the consumer surplus is represented by 4, 5+6 was lost c) the consumer surplus is represented by 1+2+3+4+5+6 and nothing was lost d) the consumer surplus remained the same and nothing was lost. 13....
Suppose a firm's total cost function in the long run cost c(y) = (y2/2048) + (1/y)...
Suppose a firm's total cost function in the long run cost c(y) = (y2/2048) + (1/y) a) At what price will the firm start offering positive supply? b) What amount will it offer at the price in (a)?
What is the gradient of the function f(x,y,z) = 5x^2 + 4y^3 + 4z^4 + xyz...
What is the gradient of the function f(x,y,z) = 5x^2 + 4y^3 + 4z^4 + xyz ?
Solve the following differential equations using inspection: 1) y”+4y=12 2) y””+4y”+4y=-20 3) (D^4 -4D^2)y=24 4) y”-y=x-1...
Solve the following differential equations using inspection: 1) y”+4y=12 2) y””+4y”+4y=-20 3) (D^4 -4D^2)y=24 4) y”-y=x-1 5) D(D-3)y=4 6) (D^2+2D-8)(D+3)y=0 7) y”-y’-2y=18xe^(2x)
A perfectly competitive firm has the following cost function: C(q) = q^2 + 5q + 20...
A perfectly competitive firm has the following cost function: C(q) = q^2 + 5q + 20 a. If the P = 25, what level of q should the firm produce to maximize its profits? How much profit does the firm earn at this level of q? b. Solve for the firm’s supply function. Illustrate the supply function on a graph. c. If there are 10 identical firms in this market, what is the industry supply function?
consider a firm operating a perfectly competitive industry and suppose that this firm's total cost function...
consider a firm operating a perfectly competitive industry and suppose that this firm's total cost function is: TC=10+2q+5q^2. if p=12, which of the following statements is correct: a) The firm is making profits b) total revenue of this firm is 2 c) total cost of this firm is 17 d) none of the other answers
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT