What output is the average variable cost

Assignment Help Microeconomics
Reference no: EM13139520

Suppose the total cost equation for a competitive firm is given by:

TC=1,000 + 10Q - 2Q2 + 0.5Q3

(A) At what output is the average variable cost (AVC) at a minimum?

(B) If the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?

Reference no: EM13139520

Questions Cloud

What was shareholders equity as of december : What ($ in 000s) was shareholders' equity as of December 31, 2012? What ($ in 000s) was shareholders' equity as of December 31, 2012?
Discuss the book of leviticus : Discuss the Book of Leviticus in terms of the Name, the Connection to the other Books, Purpose, and Outline of the Main Events of the Book.
What is the average thickness of the sheet in meters : If a 220 piece of gold (density =19.32 ) is hammered into a sheet measuring 2.3*1.0 ft. , what is the average thickness of the sheet in meters?
What process is responsible for position effect variegation : What process is responsible for position effect variegation? A. Inactivation of a gene due to deletion B. Activation of a gene by an enhancer C. Gene duplication D. Inactivation of a gene due to its incorporation in a heterochromatic region of the..
What output is the average variable cost : At what output is the average variable cost (AVC) at a minimum and if the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?
Determine the best method to allocate of common costs : determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel etc), either by salary or number of employees.
Discuss the book of deuteronomy : Discuss the Book of Deuteronomy in terms of the Name of the Book, Authorship, Occasion and Purpose of the Book and an Outline of the Book.
Initial value method in accounting for the combination : One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this..
How much copper(ii) oxide (cuo) will form : If 100.0 grams of copper (Cu) completely reacts with 25.0 grams of oxygen, how much copper(II) oxide (CuO) will form from 140.0 grams of copper and excess oxygen?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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