Calculate total cost function for the firm

Assignment Help International Economics
Reference no: EM1375031

A company that produces T-shirts and sells its items in a perfectly competitive market. The manager forecasts the wholesale value of T-shirts next year to be $7.00. The company's estimated marginal cost is

where Q is the number of T-shirts produced and sold each month. The Company will have a fixed cost of $2,000 per month.
[A] What is:
(a). The total cost function for the firm?

(b). The average total cost function for the firm?

(c). The average variable cost function for the firm?

[B] At what output level does average variable cost reach its minimum value? What is the value (in dollars) of the average variable cost at its minimum point?

[C] How many T-shirts should the company produced and sell each month?

[D] What is its monthly profit (loss)?


Reference no: EM1375031

Multiple choice questions on exchange rate

Smith is a currency trader and reviewing forward foreign exchange rates. His investors have made several statements regarding foreign exchange rates.

When did twentieth century end and twentyfirst century begin

When did the twentieth century end and the twenty-first century begin? Why? (b) What major themes characterize the twenty-first century so far? What are the biggest challen

Determine immediate effect on deposit on banking system

Dubya make a decision to deposit $5,000 of his cash holdings in Wachovia. The required reserve ratio is set at 10 percent or .10 and the bank does not hold any excess reserves

Outline why the culture of a country influences the costs

What can we learn about International Business from this thing and outline why the culture of a country influences the costs of doing business in that country. Illustrate yo

Why do you think these asian firms decided to build product

Since the NAFTA was established, many Asian firms especially those from Japan and Korea made extensive investments in Mexico. Why do you think these Asian firms decided to bui

International financial reporting standards

On the basis of your analysis of the factors presented in the case, determine whether Centcom, TTL Group, or neither party should consolidate Britel under International Fina

Comparative advantage and specialization

Pat Protectionist thinks the United States imports too many goods from low wage nations like China. Pat will often point out items that have "made in China" labels on them and

Marginal rate of substitution

My income is $300 a month, the price of good X is $4, and value of good Y is also $4. Given these prices & income, I purchase 50 units of X and 25 units of Y.


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd