Question

A firm’s total cost function is given by: TC = 5000 + 4100Q –
8Q^{2} + 0.004Q^{3} What is the
**minimum price** the firm can accept so it does not
have to **shut down** in the short-run?

Answer #1

A firm’s total cost function is given by: TC = 10000 + 8200Q –
16Q2 + 0.008Q3 What is the minimum price the firm can accept so it
does not have to shut down in the short-run?
Select one: a. 50 b. 100 c. 200 d. None of the above

Consider a firm with a short run Total Cost (TC) given by TC=200
+ 30Q - 5Q^2 + Q^3.
What is the firm’s fixed cost? What is the firm’s marginal cost?
What is firm's shut down price?

A perfectly competitive firm’s total cost function is given by:
TC = 400+4Q2 . How much output does the firm produce
in the long-run? What is the price of the product
in the long-run?

A perfectly competitive firm’s total cost function is given by:
TC = 200+2Q2 . How much output does the firm produce
in the long-run? What is the price of the product
in the long-run?

1) A perfectly competitive firm that sells fish has a marginal
cost function given by MC = 3q. The market has determined a price
of P = 60. How many fish will this firm produce?
2)See the previous question about the perfectly competitive fish
firm. Suppose that at this level of output, the firm has average
costs of production of ATC = 42. How much total economic profit
will the firm earn?
3) A perfectly competitive firm will shut down...

A perfectly competitive firm’s total cost function is given by:
TC = 200+2Q2 . You also know that the market demand
function for this product is: QD=100-P. How many
firms are in the market in the
long-run?
Select one:
a. N=10
b. N=8
c. N=6
d. None of the above

2. Consider a perfectly competitive firm with total costs ?? = ?
+ ?? + ??2
a) Identify the fixed cost ??, and the variable cost of this
firm, ??(?). (Each of them is just a part of the total cost.)
b) Find the average cost ??(?), and the marginal cost ??(?).
c) Long-run supply. Find the minimum of the ??(?) curve, which
constitutes the “shutdown price” in a long-run setting. Use this
“shut-down price” to describe the firm’s long-run...

10. Suppose a perfectly competitive firm has the following total
cost function: TC = 10 + (0.1 ∗ q^2). The market demand is given by
Q = 100 – 10p. If p = 10, the firm's profits will be
A) 240.
B) 250.
C) 260.
D) -10 because the firm will shut down.

Consider the following total cost function for Firm A:
TC(Q)=4Q3-12Q2+2Q+1,000,000. Calculate TVC, AVC, TFC, AFC, AC. Does
this cost function satisfy the law of diminishing returns? Hint:
MC(Q)= 12Q2-24Q+2 Consider the following Long-run average cost
function for Firm A: TC(Q)= 12Q+4 (Q represents the scale of
operation). Does this firm benefit from scaling down? Explain your
answer.

3. Suppose that a price-searcher monopolist had a total cost
function given by: TC= 20 + 2Q +0.25Q2.
The demand for the price searcher's product is given by:
QD= 100 -5P.
Calculate the price the monopolist will charge.
(Do not include a dollar sign in your response. Round to the
nearest two decimals.)
4. Suppose that a price-searcher monopolist had a total cost
function given by: TC= 20 + 2Q +0.25Q2.
The demand for the price searcher's product is given...

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