Demand function is given by Q=84-2P and cost function is C(q)=25+2q+q2 1) What are the qualitative features of the costs of this cost function? i.e. average, marginal, variable, properties, and what are the key prices – shut price, breakeven price, revenue maximizing and profit maximizing price? 2) Using this cost structure and demand - how many firms are likely to operate in the long run (note: that in the long run firms tend to operate close to minimum average cost)?
Demand function is given by Q=84-2P and cost function is C(q)=25+2q+q2 1) What are the qualitative features of the costs of this cost function? i.e. average, marginal, variable, properties, and what are the key prices – shut price, breakeven price, revenue maximizing and profit maximizing price? 2) Using this cost structure and demand - how many firms are likely to operate in the long run (note: that in the long run firms tend to operate close to minimum average cost)?
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
ChapterB: Differential Calculus Techniques In Management
Section: Chapter Questions
Problem 5E
Related questions
Question
1) What are the qualitative features of the costs of this cost function? i.e. average, marginal, variable, properties, and what are the key prices – shut
2) Using this cost structure and demand - how many firms are likely to operate in the long run (note: that in the long run firms tend to operate close to minimum average cost)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 7 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning