Find the total cost and marginal cost function, Microeconomics

Assignment Help:

Question :

(a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost

Average Revenue: P = 10
Average Cost: AC = 4 + 0.6 Q

(i) Find the total cost and marginal cost function

(ii) Calculate the profit maximisation output level and the resulting profit/ loss.

(iii) Calculate market output and market price

(iv) If market demand shift to D = 420 - 2P and Firm A faces an average cost given by AC = 2 + 0.8Q what is the profit maximisation output level and resulting profit /loss for Firm A if AC is unchanged?

(v) What is the resulting output if we were in a LR situation?


Related Discussions:- Find the total cost and marginal cost function

What is cost effectiveness analysis, Q. What is Cost effectiveness analysis...

Q. What is Cost effectiveness analysis? Cost effectiveness analysis A method which seeks to identify the least cost option for meeting a particular objective. It actives prior

Rational producer, would a rational producer be concerned with the average ...

would a rational producer be concerned with the average or marginal product of an input in dec

Demand, #questASSIGNMENT #1 The demand function for Product X is given by: ...

#questASSIGNMENT #1 The demand function for Product X is given by: Qdx = 80- 2Px- 0.05P²x -0.2Py + 4Pz + 0.01I+ 2A Where: Px Price of good X $120.00 Py Price of related good y $100

Explain why each of the following factors may influence the, Explain why ea...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

I am doing micro assignment, how to write the conclusion,i am doing the nik...

how to write the conclusion,i am doing the nike company.

Pareto efficiency, how to find pareto efficient output using algebra

how to find pareto efficient output using algebra

Calculates suspicion of government , Implicit in these analyses is the fact...

Implicit in these analyses is the fact that without government we could have neither shortage nor surplus.  In large calculates, the suspicion of government is due to it has the po

Long run average cost (lac), Long Run Average Cost (or LAC) -Constant R...

Long Run Average Cost (or LAC) -Constant Returns to Scale If the input is doubled, the output will double and average cost is constant at all the levels of output.

Marginal cost & marginal revenue, If Coolest IceCream ice cream parlor has ...

If Coolest IceCream ice cream parlor has been closing at 5pm with $120 of marginal revenue and $80 of marginal cost for the last hour open, what should Coolest IceCream do to maxim

Write Your Message!

Captcha
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