User Account

All Pages

What output is the average variable cost

Assignment Help Microeconomics
Reference no: EM13139520

Suppose the total cost equation for a competitive firm is given by:

TC=1,000 + 10Q - 2Q2 + 0.5Q3

(A) At what output is the average variable cost (AVC) at a minimum?

(B) If the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?

Reference no: EM13139520

Questions Cloud

What was shareholders equity as of december : What ($ in 000s) was shareholders' equity as of December 31, 2012? What ($ in 000s) was shareholders' equity as of December 31, 2012?
Discuss the book of leviticus : Discuss the Book of Leviticus in terms of the Name, the Connection to the other Books, Purpose, and Outline of the Main Events of the Book.
What is the average thickness of the sheet in meters : If a 220 piece of gold (density =19.32 ) is hammered into a sheet measuring 2.3*1.0 ft. , what is the average thickness of the sheet in meters?
What process is responsible for position effect variegation : What process is responsible for position effect variegation? A. Inactivation of a gene due to deletion B. Activation of a gene by an enhancer C. Gene duplication D. Inactivation of a gene due to its incorporation in a heterochromatic region of the..
What output is the average variable cost : At what output is the average variable cost (AVC) at a minimum and if the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?
Determine the best method to allocate of common costs : determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel etc), either by salary or number of employees.
Discuss the book of deuteronomy : Discuss the Book of Deuteronomy in terms of the Name of the Book, Authorship, Occasion and Purpose of the Book and an Outline of the Book.
Initial value method in accounting for the combination : One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this..
How much copper(ii) oxide (cuo) will form : If 100.0 grams of copper (Cu) completely reacts with 25.0 grams of oxygen, how much copper(II) oxide (CuO) will form from 140.0 grams of copper and excess oxygen?

Reviews

Write a Review

Microeconomics Questions & Answers

  Omars marginal utility

How big will that budget have to be before he would spend a $1 buying a first cup of coffee and omar has a budget that he can spend only on donuts.

  Steady state level of capital

Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.

  Determine the long-run marginal cost function

Determine the long-run marginal cost function for electricity generation and determine the short-run average variable cost and marginal cost at the output level in Part (d)

  Calculate point elasticities at prices

Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?

  What is the new equilibrium price to the students

What is the equilibrium price in this market and how many cups of coffee are traded in equilibrium

  Calculate optimal batch size for second cup coffee shop

How much should the retailer set the camera price at in order to maximize his own profit and what is the most logical explanation to what may have happened assuming that both companies kept doing business afterwards as usual?

  Concept of elasticity

Evaulate the price elasticity of demand for subway rides. The subway fare in your town has just been increased from the current level of 50 cents to $1.00 per ride.

  Distinguish oligopoly from monopolistic competition

Describe how price regulation may improve the performance of monopolies. In your answer distinguish between socially optimal pricing and fair return pricing.

  Fast food restaurant production function

I believe that fast food restaurants show short run production function because of the one fixed input, capital. But, I need to elaborate more and produce the production function equation Q=F (L,K,M...) Can you please help?

  Advertising between competition and oligopoly

Consider some of products which are widely advertised on television. By what type of firm is each produced the perfectly competitive firm, an oligopolistic firm, or another kind of firm? How many major products can you think of that are not advert..

  Main factors which affecting current price of gasoline

Discuss the main factors (supply and demand) affecting the current price of gasoline. Include at least two supply and two demand.

  Question about monopoly theory

Since a monopoly is the only source of supply, customers are entirely at its mercy. There is no limit to the price the monopoly can charge.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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