Find the total cost and marginal cost function, Microeconomics

Question :

(a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost

Average Revenue: P = 10
Average Cost: AC = 4 + 0.6 Q

(i) Find the total cost and marginal cost function

(ii) Calculate the profit maximisation output level and the resulting profit/ loss.

(iii) Calculate market output and market price

(iv) If market demand shift to D = 420 - 2P and Firm A faces an average cost given by AC = 2 + 0.8Q what is the profit maximisation output level and resulting profit /loss for Firm A if AC is unchanged?

(v) What is the resulting output if we were in a LR situation?

Posted Date: 11/29/2013 6:44:05 AM | Location : United States







Related Discussions:- Find the total cost and marginal cost function, Assignment Help, Ask Question on Find the total cost and marginal cost function, Get Answer, Expert's Help, Find the total cost and marginal cost function Discussions

Write discussion on Find the total cost and marginal cost function
Your posts are moderated
Related Questions

WTO Agreements: The WTO administers 29 agreements; these cover different areas like trade in goods and services, investment measures, intellectual property rights, etc. Some o

In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is: D(p) = 1200-25p where p is the price for one cone of ice cream. Al



Consider what would happen if a taxes of 10000$ was imposed on imported automobiles on dealers.Using a demand and supply diagram, show its impact of price and quantity. Suppose the

to what extent are interest rates determined by the economic theory


Discuss the concept of dynamic multiplier