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3. Consider a competitive firm with total costs given by TC(q) 10010q+ q? The firm faces a market price p = 50 (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q (c) For what value of output is ATC minimized? 1 (d) Find the profit maximizing level of output q. At this level of output, what are TR, TC, ATC, and *? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corre- sponding to profit and label it. (f) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, TR, TC, and ? (g) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?

Question

Please answer #3e,f and g please.

3. Consider a competitive firm with total costs given by
TC(q) 10010q+ q?
The firm faces a market price p = 50
(a) Write expressions for total revenue TR and marginal revenue MR as functions of
output q
(b) Write expressions for average total cost ATC, average variable cost AVC, and
marginal cost MC as functions of output q
(c) For what value of output is ATC minimized?
1
(d) Find the profit maximizing level of output q. At this level of output, what are
TR, TC, ATC, and *?
(e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the
profit maximizing level of output. If there are profits, shade the region corre-
sponding to profit and label it.
(f) If fixed costs increase from 100 to 500, what happens to the profit maximizing
level of output, TR, TC, and ?
(g) If fixed costs increase from 100 to 500, should the firm continue to operate in the
short-run? What about the long-run?
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Transcribed Image Text:3. Consider a competitive firm with total costs given by TC(q) 10010q+ q? The firm faces a market price p = 50 (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q (c) For what value of output is ATC minimized? 1 (d) Find the profit maximizing level of output q. At this level of output, what are TR, TC, ATC, and *? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corre- sponding to profit and label it. (f) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, TR, TC, and ? (g) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?
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