Is this firm in the long run or in the short run

Assignment Help Business Economics

Reference no: EM131099863

A firm’s cost function is C = 5Q + 0.1Q^2

1. Suppose the market price is $10. How many units will be produced by this firm to maximize its profit?

2. Is this firm in the long run or in the short run?

3. What is the lowest price at which the firm will produce?

Reference no: EM131099863

Questions Cloud

Calculate the annual equivalent depreciation : A machine was purchased for $100,000. Estimated salvage is $27,000 in 7 years. 3 year MACRS depreciation is being used. (33.33, 44.45, 14.81, 7.41). The machine will be kept for 7 years and then sold for $40,000. Calculate the annual equivalent depre..

When price is above average cost for the existing firms : Why does the entry of new firms occur in a competitive market when price is above average cost for the existing firms? Provide real world examples.

Thematic study of literature and music : How do you suppose that a thematic study of literature, music, and art might enable a person to become a well rounded and well educated leader in his/her own realm of influence and help him/her to relate to his/her public and private life?

What is expected future wealth : Suppose John now has W = $4900 and foresees that there is 50% chance encountering a big loss of $4800 in the future. Assuming that John's preference can be described by the utility: U ( W ) = sqrootW. What is John's expected future wealth? What is Jo..

Is this firm in the long run or in the short run : A firm’s cost function is C = 5Q + 0.1Q^2. Suppose the market price is $10. How many units will be produced by this firm to maximize its profit? Is this firm in the long run or in the short run? What is the lowest price at which the firm will produce..

Uncharacteristically well-behaved moment : Jack is looking to replace the recently sunk Black Pearl. In an uncharacteristically well-behaved moment, he considers buying a new ship with his pirate's hoard of gold. But which to buy? The Retribution costs $7,000 and should last three years, wher..

Profit-maximizing output-price and profit of pick industries : Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. what im..

Firms have short-run supply curve with slope : An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of $5, half of the firms have a short-run supply curve with a slope (change in quantity/change in price) of 1; the other half each have a short-run ..

Teleconference call to shareholders : "In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..

User Account

All Pages