Determine the perfectly competitive firms profit, Managerial Economics

1. Suppose in a perfectly competitive industry the market demand and supply forces combine to produce a short-run equilibrium price of Rs 70. Suppose that a firm in this industry has a weekly total cost function expressed by the equation TC = 200 + 25Q - 6Q2 + 1/3Q3. Determine the perfectly competitive firm's profit maximizing output rate and the amount of its short-run profits or losses.

2. A competitive firm's total revenue is Rs 100, its total cost is Rs 120 and its total fixed cost is Rs 40. Should the firm stay in business? Why?

 

Posted Date: 4/1/2013 6:18:46 AM | Location : United States







Related Discussions:- Determine the perfectly competitive firms profit, Assignment Help, Ask Question on Determine the perfectly competitive firms profit, Get Answer, Expert's Help, Determine the perfectly competitive firms profit Discussions

Write discussion on Determine the perfectly competitive firms profit
Your posts are moderated
Related Questions
A profit-maximizing firm faces the following options for hiring workers: a) Assume the firm has limited space so that it can only hire one worker. Which type of employee sh

Determine the law of Demand Curve The law of demand can also be presented through a curve known as demand curve. Demand curve is a locus of points showing numerous alterative p


FUNCTIONS OF CENTRAL BANK Economists and financial experts lack in unanimity about the functions of a central bank. According to Kisch and Elkin, the essential function of a c

Measuring Point Elasticity on a Non-linear Demand Curve Let's now explain the method of measuring point elasticity on a non-linear demand curve. Assume we want to measure the

Q. Show the method of production? A process or method of production is a combination of inputs essential for the production of output. A method of production is technically eff

A firm supplied 3000 pens at the rate of Rs 10. Next month, due to a rise of in the price to 22 rs per pen the supply of the firm increases to 5000 pens. Find the elasticity of sup

Collective bargaining Collective bargaining  refers to the whole process by which trade unions and employers (or their representatives) arrive at an enforce agreements.  Tra


Problem 1: All economies of the world can be said to be ‘mixed', to a greater or lesser degree, in that there is no economy where there is no state activity and no economy wher