Calculate optimal output and profits

Reference no: EM1369462

Syracuse Paper supplies printer paper in upstate New York. Like the output of other wholesale distributors, Syracuse Paper must meet strict guidelines and the printer paper supply industry can be regarded as perfectly competitive. Total and marginal cost relations are:

TC = $3,600 + $5Q + $0.01Q2
MC = dTC/ dQ = $5 + $0.02Q

where Q is cases of printer paper per day.

A. Calculate the firm's optimal output and profits if prices are stable at $20 per case.
B. Calculate optimal output and profits if prices rise to $25 per case.
C. If Syracuse Paper is typical of firms in the industry, calculate the firm's equilibrium output, price, and profit levels.

Reference no: EM1369462

Questions Cloud

Compare murder rates with and without death penalty : Compare murder rates with and without death penalty. Cross-section of states: is murder rate higher on average in states without executions.

Question on perfect competition : Discuss and explain perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.

Explain data by state of computer-s electrical switches : Differentiate between computer data represented by the state of computer's electrical switches and meaningful information which is displayed to user.

Determine the firm optimal level of output : The supply and demand equations for a hypothetical perfectly competitive market are given through QS=-100+3P and QD = 500 - 2P.

Calculate optimal output and profits : Syracuse Paper supplies printer paper in upstate New York. Like output of other wholesale distributors, Syracuse Paper must meet strict guidelines and printer paper supply industry can be regarded as perfectly competitive.

Who expend resources to ensure that y only buy ipos : who expend resources to ensure that y only buy IPOs that will yield positive returns over time and uninformed investors who buy stock indiscriminately and without information (Rock, 1986, p. 190). Could IPOs Be Lemons.

Explain investigate the historical perspective : Explain Investigate the HISTORICAL PERSPECTIVE of how U.S CEOs get paid, how it is originally

Describe the design and application of arrays : Describe the design and application of arrays and how the array simplifies program development. Support your answer with hypothetical real-world example.

Effectiveness and efficiency : Effectiveness and Efficiency - What process and outcome evaluation could be used to display the effectiveness and efficiency of the following program?

User Account

All Pages