User Account

All Pages

Average cost and average variable cost

Assignment Help Business Economics
Reference no: EM131605594

You must show your work..not simply write down an answers.

1. Suppose that a perfectly competitive firms' Total Cost function is given by:

SRTC(q) = 50 + 80q -10q2 + .6q3

a. What is fixed cost equal to? What is Variable Cost equal to?

b. What is Marginal Cost equal to? What is Average Variable Cost equal to?

c. Below which market price (a number) will this firm choose to produce 0 output?

d. Choose a market price that is between Average Cost and Average Variable Cost. Will the firm choose to produce a positive output level? Depict this output level in a graph that includes all the appropriate curves. Explain verbally (and with numbers) whether this firm would choose to produce the output you chose.

e. What does it mean by a firm to be a price taker? What is the implication of this for the individual firms' demand curve? You must also mention in your answer the term elasticity (correctly of course).

Reference no: EM131605594

Questions Cloud

Restore participating and self-support to free enterprise : In his book, Rewarding Work: How to Restore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps.
Compare contemporary reasoning for sentencing schemes : The purpose of this question is to assess your knowledge and understanding of the relevant concepts presented in the readings, lectures, and video
How many revolutions does the engine make in the time : The angular speed of a car engine increases from 1100 revs/min to 2500 revs/min in 6 sec.
Racial and ethnic inequality using the conflict theory : Most sociologists explain U.S. racial and ethnic inequality using the conflict theory, which blames the system rather than the individual.
Average cost and average variable cost : Choose a market price that is between Average Cost and Average Variable Cost. Will the firm choose to produce a positive output level?
Estimate the time at which the population is a maximum : The birth rate, B, in births per hour, of a bacteria population is given in Figure. The curve marked D gives the death rate, in deaths per hour.
Review your classmates posts : Review your classmates posts and try to find some common ground or expand on the students' ideas. Use the text to expand everyone's understanding of attraction
How does memory change in late life : Describe social theories of aging, including disengagement theory, activity theory, continuity theory, and socioemotional selectivity theory.
Academic essay - develop skills in critical thinking : The primary purpose of this assessment item is to help students develop skills in critical thinking in relation to organisational change

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd