Answer to Question #334048 in Microeconomics for Shapi

Question

QUESTION 1:

A firm faces the demand schedule p = 200 - 2Q and the total cost function

TC = 2/3 Q^3 - 14Q^2 + 222Q + 50

Derive expressions for the following functions and find out whether they have maximum or minimum points. If they do, say what value of q this occurs at and calculate the actual value of the function at this output.

Marginal cost.

Average variable cost

Average fixed cost

Total revenue

Marginal revenue

Profit

Construct your own example of a function that has a turning point. Check the second-order conditions to confirm whether this turning point is a maximum or a minimum.

Explain why a firm which is a monopoly seller in a market with the demand schedule P = 66.8 - 0.4Q and which faces the total cost schedule TC = 220 + 120Q - 12Q^2 + 0.5Q can never make a positive profit.

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order