What is the minimum level of average variable costs

Assignment Help Econometrics
Reference no: EM131248468

Dave's Fresh Catfish is a northern Mississippi farm that operates in the perfectly competitive catfish farming industry. Dave's short-run total cost curve is STC(Q) = 400 + 2Q +0.5Q2 , where Q is the number of catfish harvested per month. The corresponding short-run marginal cost curve is SMC(Q) = 2 + Q. All of the fixed costs are sunk.

a) What is the equation for the average variable cost (AVC)?

b) What is the minimum level of average variable costs?

c) What is Dave's short-run supply curve?

Reference no: EM131248468

Questions Cloud

Derive conservation of energy for the pendulum : Derive conservation of energy for the pendulum without damping using the slope field equation. - Derive conservation of energy for a general conservative system using the slope field equation.
How many windows should ron wash to maximize profit : What is Ron's short-run supply curve, assuming that if he produces zero output, he can rent or sell his fixed assets and therefore avoid all his fixed costs?
Derive conservation of energy for conservative system : Derive conservation of energy for a general conservative system by multiplying the differential equation by dx/dt. -  Derive conservation of energy for a general conservative system by showing that the derivative of energy is zero.
Create dynamic organizations by understanding legal : Evaluate ways social entrepreneurs, entrepreneurs, and intrapreneurs create dynamic organizations by understanding legal and tax issues.
What is the minimum level of average variable costs : The corresponding short-run marginal cost curve is SMC(Q) = 2 + Q. All of the fixed costs are sunk.
What strengths do you bring to the doctoral journey : Who are you as a learner and why are you here? What strengths do you bring to the doctoral journey and what are areas of growth you will need in order to be successful in the doctoral journey?
What is the total inventory for all four sweaters : Benetton is considering pooling its thread inventory by knitting sweaters, then dyeing. The current process orders already dyed thread in 4 colors, and then knits 4 colors of sweaters. What is the total inventory (using R) for all four sweaters
What is the overall producer surplus for the market : The semiconductor market consists of 100 identical firms, each with a short-run marginal cost curve SMC(Q) = 4Q. The equilibrium price in the market is $200.
Determine the phase plane using software : Determine the values of δ for which (0, 0) is a stable spiral and stable node. Interpret the answer in terms of under-damping and over-damping.

Reviews

Write a Review

Econometrics Questions & Answers

  What combinations are clearly preferred to other combination

1. Use these combinations for parts a and b: COMBINATION BASKETS POUNDS OF FOOD PREFERENCE A 1 1 9 B 1 2 6 C 1 3 3 D 2 1 8 E 2 2 5 F 2 3 2 G 3 1 7 H 3 2 4 I 3 3 1 a. If more is preferred to less, which combinations are clearly preferred to other co..

  What rate ofreturn did engineer make per month

An entrepreneurial mechanical engineer started a tires hredding business to take advantage of of a Texas state law thatoutlaws the disposal of whole tires in sanitary landfills. The cost of the shredder was $220,000.

  What is global per capita income today

What is global per capita income today? $

  Determine the point where the particle will hit the xy-plane

Suppose a particle rolling down (towards the xy-plane) the helix shaped track given by r(t)=(2 cos t, 2 sin t, t) flies off the track when t = pi/4. Determine the point where the particle will hit the xy-plane.

  Interpret the trends of the three macroeconomic variables

Fourth, based on the trends of the three macroeconomic variables, it assesses how the trends will impact the supply and demand of Tylenol. Include all calculations in an Excel file.

  What are the hospitals total financial requirements

Assume that the average payment percase for the Medicare and Medicaid patients is $3,500. Assume thatHoly Family realizes no payment on its charity care and bad debtcases. Holy Family's contracts with commercial payers are negotiated

  Under what circumstances do scope limitations arise

Give some examples of scope limitations. What should an auditor do if a limitation on scope is imposed by circumstances beyond the client's control?

  Find what is the firms current output level

At its current short-run level of production, a firm's average variable costs equal $30, and its average fixed costs equal $70. Its total costs at its current production level equal $34,000. a. What is the firm's current output level

  Determine what is the net cash flow after tax

The Lone Pine Gold Company (LPG Co.) purchased its corporate headquarters office building for $390,000 in Lone Pine, California on May 18, 2002. After some remodeling and refurbishing that cost $56,000, the company placed this building in service ..

  Determine what level of q maximizes net benefits

Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q)=150+28Q-5Q^2 and C(Q)=100 + 8Q(Note: MB(Q)=28-10Q and MC(Q)=8. What level of Q maximizes net benefits

  Compute the price elasticity of demand for paint

A painter and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your useage of paint drops from 35 gallons a month to 20 gallons a month. Compute the price elasticity of demand for paint and show calculations.

  What is the mark-up and what is the marginal cost

The price of a good to be sold by a Monopoly is $0.50. The market has an elasticity of demand (n) of 5. a. What is the mark-up and what is the Marginal cost b. What would this look like for a perfectly competitive market

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!

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