Reference no: EM13222152
The following data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
Q LTC
1 33
2 54
3 75
4 100
5 150
6 228
7 350
(i) A competitive firm's total cost function is given by
TC = .25Q2 + 25
(with MC = .5Q).
The firm faces a market price of $15. Algebraically calculate the profit maximizing output and the level of optimal profit for the firm.
(ii) Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Do you see any change from your answer to (i) above? Explain why or why not.
A monopolist's demand function is given by
P = 80 - 3Q
(with MR = 80 - 6Q).
Its total cost function is
TC = 20Q + 200
(with MC = 20).
(i) Using algebra determine the profit maximizing output, price and optimal profit for the firm.
(ii) Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.
|
State van der waals pressure of ethane gas at temperature
: What the Van der Waals Pressure of ethane gas at temperature of 500K and Molar Volume of 7.28 x 10^-5 m^3/mol?
|
|
Discuss how or if mrp and jit affect pac differently
: Discuss how or if MRP and JIT affect PAC differently. Do you view these impacts as positive or negative? Why?
|
|
Identify at least one management goal for fannie mae
: Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual. Explain the relationship between these companies. Explain in your own words what happened with these companies which caused an international financial crisis.
|
|
What is this producers profit-maximizing output level
: The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing and able to pay for this outputis $40 per unit. If it priduces this output, the firms a..
|
|
Determine profit maximizing output-price and optimal profit
: Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Do you see any change from your answer t..
|
|
What is the difference between two ways of measuring levels
: Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development. Identify an advantage and disadvantage of..
|
|
Pros and cons of involving citizen scientists
: Research one of the citizen science programs that are monitoring populations and communities of birds around the world. What are the pros and cons of involving citizen scientists in research projects?
|
|
What are the relevant markets in the model
: an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one..
|
|
What are the short- and long-term economic benefits
: What are the short- and long-term economic benefits and costs associated with our current high federal government budget deficits Do you think the economic benefits outweigh the economic costs, or not If we wished to reduce the budget deficit then h..
|