TC(Q)=5+2* Q² Provide a table of the marginal costs and average total costs for Q = 0, 1, 2, ..., 10. At what quantity are economies of scale exhausted? If the good/service being sold has a constant price of $20, at what quantity are profits maximized? (Note: If there is not a quantity integer that corresponds to the profit-max condition, firms would halt production at the last unit producing profit.)

TC(Q)=5+2* Q² Provide a table of the marginal costs and average total costs for Q = 0, 1, 2, ..., 10. At what quantity are economies of scale exhausted? If the good/service being sold has a constant price of $20, at what quantity are profits maximized? (Note: If there is not a quantity integer that corresponds to the profit-max condition, firms would halt production at the last unit producing profit.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

See similar textbooks

Similar questions

Suppose that you can sell as much of a product (in integer units) as you like at $60 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC=7q This means that each unit costs more to produce than the previous one (e.g., the first unit costs 7*1, the second unit (by itself) costs 7*2, etc.). If fixed costs are $100, what is the profit at the optimal integer output level? Please specify your answer as an integer.
Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q^2. a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why? *Please show all work*
The total cost equation for a firm producing two products is TC(Q1, Q2) = 25 + Q12 + 4Q22 + 5Q1Q2 (a) Do cost complementarities exist for this firm? (b) Under what circumstances do economies of scope exist for this firm? (c) Suppose that Q1 = Q2 = 3. Do cost complementarities exist? (d) Suppose that the firm is currently producing 5 units of Q1, and 10 units of Q2, What is the firm's total cost of production? e) Suppose that the firm divests itself of the division selling Q1 to a competitor. How much will it cost the firm to continue producing 10 units of Q2? What is the total cost of producing both Q1 and Q2 if the firm producing Q1 produces 5 units?
Your firm's research department has estimated your total revenues to be R left parenthesis Q right parenthesis equals 30 comma 000 Q minus 80 Q squared and your total costs to be C left parenthesis Q right parenthesis equals 1 comma 000 plus 20 Q squared. What level of Q maximizes net benefits?
A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. If the price is $20 per unit, what is the break even amount of units for technology A? A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. If the price is $20 per unit, what is the break even amount of units for technology A? a. 70 b. 60 c. 50 d. None - They would have to shut down
Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P = price and Q = Quantity of output), and its total cost of production as TC = 20 + Q + 0.2Q2 Where TC = total cost and Q = Quantity of output) Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC? Average Variable Cost AVC? Average Fixed Cost AFC.? Marginal Cost MC? The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.? The output level that minimizes average total cost.? please answer all questions
A company is planning to manufactureand market a new two-slice electric toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 200 toasters at a price of $16 per toaster and a weekly demandof 300 toasters at a price of $14 per toaster. The financial department estimates that weekly fixed costs will be $1,400and variable costs (cost per unit) will be $4. a)Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b)Using your knowledge from Finite Math, determine the Revenue functionin terms of ?. c)Determine the Marginal Revenu eat 2 different production levelsfor example 350 and 600 units. Interpret these results.(HINT: Consider what a positive or negative first derivative implies) d)Assume that the cost function is linear. Use the financialdepartment’s estimates to express the cost…
Suppose a company has fixed costs of $1500 and variable costs of (3/4)x + 1120 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1200 − (1/4)x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.)x = (b) Find the maximum revenue. (Round your answer to the nearest cent)$ (c) Form the profit function, P(x), from the cost and revenue functions.P(x) = Find maximum profit. (Round your answer to the nearest cent.)$ (d) What price will maximize the profit? (Round your answer to the nearest cent.)
James mainly sells confectionery items, newspapers, magazines and cigarettes in his convenience store. Noting his small business is not thriving, he thought of selling hot pies and rolls too. Suppose the total cost function for rolls and pies is, TC = 900 + 50Q, Q = Q1 + Q2 Where Q1 and Q2denote the quantities of rolls and pies respectfully. If P1 and P2 denote the corresponding prices, the inverse demand equations are. Q1 = 70 - P1 and 0.5Q2 = 100 - P2 a)If James decides to make a total of 48 rolls and pies per day and charges different prices as above (that is, P1 ≠ P2 ), how many of rolls and pies each should he make in order to maximize the profit of a particular day? Estimate and interpret the Lagrange Multiplier λ [note: assume second-order conditions are satisfied]. b)Using your knowledge of input-output tables, explain which components of the economy will be affected if all convenience stores, including James’, closed down for three months due to the COVID-19. What would…
*** Please answer e, f, g,h** An ice cream company finds that at a price of $4.00 for each pint, they can sell 4000 pints of ice cream per day. For every $0.25 decrease in price, daily demand increases by 200 units. The company’s cost function is C(q)=0.01q2-90q+211600, where C represents their daily costs (in dollars), and q is the number of pints sold per day. a)Find the demand function q(p). b) Find the revenue function R(q). Hint: first you will need to solve for p in terms of q from the demand function.) c) How many pints should the company sell per day if they want to maximize their revenue? d) what price should the company charge for each pint if they want to maximize their revenue? e)Use the criteria MC(q)=MR(q) to determine how many pints the company should sell per day if they want to maximize their profit. f)What is the maximum profit the company can earn per day? g)Find the average cost function. h)How many pints should the company sell per day if they want to minimize…
If the total cost for producing widgets can be represented by TC = 8,000 + 0.75*X, where X is the number of widgets produced and total revenue can be represented by TR = 4.00*X, what is the break-even value for number of widgets produced? a. 1,684 b. 2,000 c. 2,462 d. 3,763
Given the cost function , TC = 4q2 + 9 - calculte marginal cost ?