Question

Suppose a competitive firm has as its total cost function: TC=29+2q2 Suppose the firm's output can be sold (in integer units) at $77 per unit. Using calculus and formulas (don't just build a table in a spreadsheet as in the previous lesson), what is the total profit at the optimal integer output level?

Please specify your answer as an integer. In the case of equal profit from rounding up and down for a non-integer initial solution quantity, proceed with the higher quantity. Hint 1: The first derivative of the total cost function, which is cumulative, is the marginal cost function, which is incremental. The narrated lecture and formula summary explain how to compute the derivative. Set the marginal cost equal to the marginal revenue (price in this case) to define an equation for the optimal quantity q. Hint 2: When computing the total cost component of total profit for a candidate quantity, use the total cost function provided in the exercise statement (rather than summing the marginal costs using the marginal cost function).

Answer #1

Answer question

1. Assume that a competitive firm has the total cost function:
TC=1q3−40q2+840q+1800TC=1q3-40q2+840q+1800 Suppose the price of the
firm's output (sold in integer units) is $750 per unit. Using
calculus and formulas to find a solution (don't just build a table
in a spreadsheet as in the previous lesson), what is the total
profit at the optimal integer output level? Please specify your
answer as an integer. Hint 1: The first derivative of the total
cost function, which is cumulative, is...

Assume that a competitive firm has the total cost function:
TC=1q3−40q2+710q+1700TC=
Suppose the price of the firm's output (sold in integer units)
is $550 per unit.
By creating tables (but not using calculus) with columns
representing cost, revenue, and profit to find a solution, what is
the total profit at the optimal output level?
Please specify your answer as an integer

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. Suppose a perfectly competitive firm has a cost function
described by TC = 200Q + Q^2 + 225 Each firm’s marginal revenue is
$240. a. Find the profit maximizing level of output. b. Is this a
short-run or long-run situation? How do you know? c. Assuming that
this firm’s total cost curve is the same as all other producers,
find the long-run price for this good.

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

(a) Suppose the total revenue (TR) and total cost (TC) curves of
the perfectly competitive firm are given by the following set of
equations: TR = 100Q and TC = Q2 + 4Q + 5, where Q is
the output. Derive the firm’s profit maximizing output and
calculate the total and average profit earned by the firm at this
level of output.
(b) How do you know that the equations above could not be
referring to a monopoly?

Monopolistically competitive firm with
a demand of Q = 630 – 3P
a total cost function of C(Q) = 25,000 + 10Q.
1. What is the profit-maximizing output level
2. What is the profit or loss from producing at the optimal
level and charging the optimal price
3. At the optimal price and quantity combination, what is your
firm's marginal revenue
4. If your firm's advertising elasticity is 0.02, what is the
optimal amount for you to advertise

The total cost function for a firm in a perfectly competitive
market is TC = 350 + 15q + 5q2. At its profit maximizing
quantity in the short-run, each firm is making a loss but chooses
to stay open. Which of the following is/are necessarily true at the
profit maximizing quantity?
MR = 15 + 5q
P>15
AR > 350/q + 15 + 5q
Both A and B are true.
Both B and C are true.
All of the above...

A firm's total cost function is given by the equation: TC = 4000
+ 5Q + 10Q2.
(1) Write an expression for each of the following cost
concepts:
a. Total Fixed Cost
b. Average Fixed Cost
c. Total Variable Cost
d. Average Variable Cost
e. Average Total Cost
f. Marginal Cost
(2) Determine the quantity that minimizes average total cost and
minimizing average variable cost.
(3) Why does its average variable cost curve achieve its minimum
at a lower level...

A perfectly competitive firm has the following total cost and
marginal cost functions:
TC = 100 +
10q – q2 + (1/3)q3
MC =
q2 – 2q +10
a) For quantities
from 0 to 10 determine: TC, TFC, TVC, and MC.
b) For quantities
from 0 to 10 determine: ATC, AFC, and AVC.
c) Assume P (MR)
equals 45. For quantities from 0 to 10 determine: TR and
profit.
d) At what quantity is
profit maximized?...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 11 minutes ago

asked 13 minutes ago

asked 25 minutes ago

asked 32 minutes ago

asked 37 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 3 hours ago

asked 4 hours ago