Question

if the marginal cost of a firm is MC = 9q^2 + 2q +1 and the marginal revenue MR = 60-q. Given that total cost is 3390 when q -10

(a) Derive an expression for total cost

(b) Derive the expression for total revenue

(c) Using the results from (a) and (b) find the total profit function

Answer #1

A firm produces electricity from a coal fired furnace with
marginal cost function of MC= 4+2q, where q is the amount of
electricity produced. There are adverse health and environmental
costs from burning coal. you do a study and find that each unit of
electricity produced form coal leads to $1 worth of heath costs to
society and $.50 of other environmental costs to society.
a) what is the formal for marginal private cost?
b)what is the formula for marginal...

the
demand equiation of a goof is given by P+2Q=20 abd the total cost
function is Q3-8Q^2+20Q+2
a) find the level of output that maximizes total revenue
b) find the maximum profit and the value of Q at which it is
achieved. verify that, at this value of Q, MR=MC

Suppose a monopoly firm has the following Cost and Demand
functions:
TC=Q2
P=20-Q
MC=2Q
MR=20-2Q
Carefully explain what the firm is doing and why.
Find the firm’s Profit maximizing Q
Find the firm’s Profit maximizing P.
Find the firm’s Profit.
2. Suppose because of an advertising campaign, which costs $150,
the monopoly’s demand curve is: P=32-Q so its MR= 32-2Q
Looking closely at the TC function and the demand curve,
explain the effects of the advertising campaign on the equations...

A monopoly firm having following cost and revenue curves for
the prices of 0,10,20,30,40,45,0
MC = 1 + 2Q
AC=10+ 6 / Q
Q = 100 - 2P
MR= 50-Q
Graph all the curves on the same axis
and find the optimal level of output and prices. Calculate the
profit or loss of the firm.

The market demand curve is P = 90 − 2Q, and each firm’s total
cost function is
C = 100 + 2q2.
Suppose there is only one firm in the market. Find the
market
price, quantity, and the firm’s profit.
Show the equilibrium on a diagram, depicting the demand function
D (with the vertical and horizontal intercepts), the marginal
revenue function MR, and the marginal cost function MC. On the same
diagram, mark the optimal price P, the quantity Q,...

The demand function for sunshades is given as:
?=270−2?P=270−2Q
where P is the price paid for a sunshade and Q
is the number of sunshades demanded.
The fixed cost is 460 while the cost per shade is 70.
When profit is maximised, the number of sunshades sold
=Answer
The maximum profit = Answer
When profit is maximised the marginal revenue, MR = Answer
When profit is maximised the marginal cost, MC = Answer

Q) Perfect Competition
Demand: P=$4
Marginal revenue: MR = $4
Average total cost: ATC = 2/Q + Q
Marginal cost :MC = 2Q
Draw a graph showing MC. MR, demand, and ATC. Illustrate this
firm's revenue, cost, and profit in your graph. Then, Explain why
the demand is perfectly elastic in a perfectly competitive
marker.

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?...

Your hospital has a demand function given by P = 404 - 2Q where
P is the price of hospital care and Q is the quantity of hospital
care. The marginal revenue (MR) function is given by MR = 404 – 4Q.
The total cost function (TC) is given by TC = 300 + 4Q +
8Q2 and the marginal cost (MC) is given by MC = 4 +
16Q.
Find the total revenue (TR) function which is a function...

A firms demand function for a good is given by P = 107-2Q and
their total cost function is given by TC = 200+3Q. (using for 6.1
to 6.4)
6.1 Obtain an expression for total revenue (price X quantity)
in terms of Q
6.2 For what values of Q does the firm breakeven?
6.3 Illustrate the answer to (ii) using sketches of the total
cost function, the total revenue function and the profit
function
6.4 From the graph estimate the...

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