A firm has the following information on productionQ.6and costs from past data:OutputTotal Cost (ТC)(Y)6.12189.277553618199IfthetotalfunctionisknowncosttobeТС - аY + br+kY+ f. and the demand for the%3Dproduct of the firm is Y = 320- (1/2). P answer thefollowing:Determine the coefticients of the cubic cost function.Derive all cost and revenue curves and the profitfunction.Show that the MC cuts the AVC when AVC is at itsminimum point. Plot the relevant graph indicating allpoints.Calculate the break even and profit maximizing levels ofoulput and price.What is the relationship between price, marginal revenueand own price elasticity of demand atmaximization point.the profit

The total cost function is an aggregate function of total fixed cost and total variable cost where…

A firm has the following information on production Q.6 and costs from past data: Output Total Cost (TC) (Y) 6. 12 18 2775 5361 8199 If the total function is known cost to be TC = aY'+ bY² + k¥ + f. and the demand for the product of the firm is Y=320- (1/2). P answer the following: Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit

A firm has the following information on production Q.6 and costs from past data: Output Total Cost (TC) (Y) 6. 12 18 2775 5361 8199 If the total function is known cost to be TC = aY'+ bY² + k¥ + f. and the demand for the product of the firm is Y=320- (1/2). P answer the following: Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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