Suppose firm A’s total cost function for the long run is given as c(q) = 3q^3 + (48/q) . Below which price in the long run will the firm choose to exit the industry (a) $32 (b) $24 (c) $16 (d) $2 (e) $0
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- Suppose firm A’s total cost function is given by c(q) = 3q^2 + 95. If the equilibrium price is $24, what is the profit maximizing quantity of output? (a) 4 units (b) 2 units (c) 0 units (d) 6 units (e) 10 unitsA profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6, and fixed cost of $270. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 90 units.10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)
- A firm has fixed costs of $80,000 associated with the manufacture of lawn mowers that cost $200 per mower to produce. The firm sells all the mowers it produces at $300 each. Find the cost, revenue and profit equations. Find the break-even quantity. (Let x be the number of mowers.)C(x) = R(x) = P(x) = break even quantity mowers= 40q – 12q² and its where q is the firm's output. (b) The total revenue curve of a firm is R(q) 400 average cost A(q) q² – 12.85q + 20 + i. Derive an expression C(q) for the firm's total cost function. ii. Derive an expression II(q) for the firm's profit function. iii. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? iv. Determine the level of output for which the firm's profit is maximized. v. What is the firms's maximum profit?A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.
- A firm in a competitive industry has the following cost function: c(y) = y3/3 - 20y2 +310y. (Note that this is a different cost function than the one used in the earlier problems.) What is the minimum price at which this firm will supply any output? (Also note that the question is asking for price, not quantity.) Answer is integer.A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (d) How many laundry sinks will the company need to produce in order to maximise it′s profits?Suppose a firm operating in a perfectly competitive industry has costs in the short run given by: SRTC = 8 + 1/2Q^2 and therefore MC = q. (a) Derive expressions for fixed costs (FC), those that do not vary with output, variable costs (VC), those that do vary with output, average variable cost (AVC), and average total cost (ATC). (b) At what quantity is AVC at its minimum (at what AVC level)? At what quantity is ATC at its minimum (at what ATC level)? Calculate ATC at q = 2 and q = 8 and sketch MC, AVC and ATC betweenq=0andq=8.
- A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs are $ 50000. They will sell the CD's for $ 79 each. Let a be the number of CD's produced. Write the total cost C as a function of the number of CD's produced. C =$ Write the total revenue R as a function of the number of CD's produced. R=$ Write the total profit P as a function of the number of CD's produced. P=$ Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Question Help: Video Submit QuestionA manufacturing firm faces the cost of production as follows : Quantity Total Fixed Costs Total Variable Costs 0 $ 100 0 1 $ 100 $ 40 2 $ 100 $ 60 3 $ 100 $ 80 4 $ 100 $ 130 5 $ 100 $ 190 6 $ 100 $ 350 (a) Calculate the company's average fixed costs, average variable costs, average total costs,, and marginal costs at each level of quantity larger than zero (b) Suppose the price of the firm's product is $ 90, what is the firm's optimal production quantity? What is the firms profit under this quantity?Suppose the cost of producing q sound systems is given by the equation C(q) = 0.4q+ + 16l c) Find the profit function, P(q) and the marginal profit function P'(q) d) Find and interpret he marginal profit when the demand is 10 systems 14) An analyst has found that a company's cost and revenue functions for a particular product are given by 21 C(x) = 2x,R(x) = 6x – 1000 %3D Respectively where x is the number of items produced a) Find marginal cost function, the marginal revenue function and the marginal profit function b) What value of x makes marginal profit equal 0 c) Find the profit when the marginal profit is zero IMG 0353.jpg IMG 0357.jpg IMG_0356.jpg 54°F Cloudy