Calculate the profit-maximizing long-run supply

Assignment Help Macroeconomics

Reference no: EM1370096

The Los Angeles retail market for unleaded gasoline is fiercely price competitive. Consider the situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50 per gallon and total cost (TC) and marginal cost (MC) relations are:

TC = $156,250 + $2.25Q + $0.0000001Q2

MC = dTC/dQ = $2.25 + $0.0000002Q

and Q is gallons of gasoline. Total costs include a normal profit.

A. Using the firm's marginal cost curve, calculate the profit-maximizing long-run supply from a typical retailer
B. Calculate the average total cost curve for a typical gasoline retailer.

Reference no: EM1370096

Questions Cloud

Apply division method to calculate hash value of character : How can we apply division method to calculate hash value of character string without using more than constant number of words of storage outside string itself?

Calculate the expected market price : Suppose you are the manager that sells a commodity in a market that is, for all intents and purposes, a perfectly competitive market.

Question related to recycling : In some regions, businesses have formed alliances to guarantee a market for recycled materials. Is this occurring in your community or nearby community

Optimal combination of inputs : The price of Labor (L) is $50 for each unit and the price of capital (C) is $20 per unit. How much labor and capital should Joy employ to produce 100,000 units? Find out the total cost of production?

Calculate the profit-maximizing long-run supply : The Los Angeles retail market for unleaded gasoline is fiercely value competitive. Suppose situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50

Professional knowledge and abilities paper : Show how this knowledge and these abilities can impact your career success

Sketch hash table to result from using hash function : Sketch hash table of length 11 which results from using hash function h(i) = (2i + 5) mod 11, to hash the keys 12, 44, 13, 88, 23, 94, 11, and 39,

Purpose of the equivalent-unit computation : Purpose of the equivalent-unit computation and how many units were completed and transferred out of Department A during February?

Determining breakeven output-total sales revenue : Find out the breakeven output and total sales revenues. Estimate the output that would generate total profit of 60,000 and total sales revenue at that output level.

User Account

All Pages