User Account

All Pages

Information for a prfectly competitive firm

Assignment Help Macroeconomics
Reference no: EM131071219

Consider the following information for a prfectly competitive firm during a one month time period. Assume that Q = the level of output and all costs are economic costs.

  • Market price = $12.
  • Total cost = 60 + 2Q + 0.5Q2
  • Marginal cost = 3 + Q

At the profit-maximizing or loss-minimizing output level, economic profit would equal:

Hint: Solve for Q first. Remember, a firm maximizes profit producing a level of output where the last unit has a marginal revenue equal to its marginal cost.

Select one:

a. +$108

b. +$118.50

c. -$10.50

d. -$75

Reference no: EM131071219

Questions Cloud

Brunhilde wishes to maintain her consumption : Brunhilde owns 1,000 shares of a firm that has just announced a dividend cut from $8.00 a share to $5.00. The share price is currently $200. If Brunhilde wishes to maintain her consumption, what should she do to offset the dividend cut?
Determine the following the built-in voltage : 5 A JFET has Na= 10 19cm -3, Nd= 10 16cm -3, a= 0.1 µm, L= 10 µm and Z= 1 mm. Assume the device is Si with an intrinsic concentration of 10 10cm -3and a relative dielectric constant of 11.8. Assume also that in saturation the square law can be use..
Houses contribute to gdp : He lives in the other house and pays $20,000 in dividends per year. If he were to rent the house in which he lives, he could earn $17,000 per year in rent. How much do the housing services provided by these two houses contribute to GDP?
What makes some people healthy and others unhealthy : Based on both your life experience and on research about predisposing factors of disease, what makes some people healthy and others unhealthy? Are there socio-economic factors associated with risk factors?
Information for a prfectly competitive firm : Consider the following information for a prfectly competitive firm during a one month time period. Assume that Q = the level of output and all costs are economic costs.
Context of organizational marketers : Consider barriers to injury in the context of organizational marketers who want to create a sustainable competitive advantage. How can marketers develop barriers to entry for commoditized products or services?
Obtain certain elective procedures : In Canada, Claire Thomas has a nationalized health care system in which everyone has coverage. She never has to worry about what she can't afford and is willing to pay the necessary taxes to keep this system afloat.
Calculate the firm inverse demand function : (a) Calculate the firm's inverse demand function. (b) Calculate the firm's marginal and average cost functions.
Determine the price point : Determine the price point where where you will not want to increase or decrease theprice to generate higher revenue. ( Hint: Think about the specificvalue of E where you won't want to increase or decrease theprice to generate higher revenues).

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd