A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may assume that the slope is a wholenumber, and the intercept is a multiple of 10. b) Find the firm’s revenue function. You do not need to draw it. c) Find the marginal revenue function, and draw it on a copy of the graph. d) Find and draw the marginal cost function.e) Use your results from parts (c) and (d) to find the profit-maximising level of output.(3 marks)f) Find the market price at this level of output.
A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may assume that the slope is a wholenumber, and the intercept is a multiple of 10. b) Find the firm’s revenue function. You do not need to draw it. c) Find the marginal revenue function, and draw it on a copy of the graph. d) Find and draw the marginal cost function.e) Use your results from parts (c) and (d) to find the profit-maximising level of output.(3 marks)f) Find the market price at this level of output.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A firm has a cost function of C = 1000 + 20Q + 1
/10Q2
a) Estimate the firm’s demand function. You may assume that the slope is a whole
number, and the intercept is a multiple of 10.
b) Find the firm’s revenue function. You do not need to draw it.
c) Find the marginal revenue function, and draw it on a copy of the graph.
d) Find and draw the marginal cost function.
e) Use your results from parts (c) and (d) to find the profit-maximising level of output.
(3 marks)
f) Find the market
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