Compute firms fixed and marginal costs

Assignment Help Managerial Economics

Reference no: EM1372414

1. Beta Industries produces floppy disks that customers 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. Show all work.

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?

Reference no: EM1372414

Questions Cloud

Analyze the impact on terms of trade : Japan primarily exports manufactured services, while importing raw materials such as food and oil. Analyze the impact on Japan's terms of trade of the following events:

Explain by how much does the carrier lengthen : A flight attendant pulls her 63N flight bag a distance of 308m along a level airport floor at a constant velocity. The force she exerts is 45N at an angle of 57° above horizontal. Find the work she does on flight bag.

What quantity of pizzas demanded soared : Quantity of pizzas demanded soared following week from 1 pie an hour to 100 pies an hour. What was price elasticity of demand for Domino's pizza.

Intercept message and generates alternative message : Computed hash value for the message. Alice is able to intercept message, and generates alternative message that has a hash value that collides with Bob's original hash value. Show.

Compute firms fixed and marginal costs : Beta Industries produces floppy disks that customers perceive as identical to those produced by numerous other manufacturers.

Find equilibrium quantity and price : While sitting in your office one evening, you begin to think about some of key microeconomic messages you want to communicate to Board. Find equilibrium quantity and price.

How would you describe balance between costs of automation : how would you describe balance between costs of automation, or fixed costs and costs of labour, or variable costs. How has Internet changed balance between automation and labou.

Write command to determine users on active directory from xp : Write down the command to determine all users on Active Directory from XP. Write down the query to look up a user on Active Directoy and see the user's property.

Compute profit maximizing price combination : Market demand and marginal revenue relations for Glove Box units are: P=$500,000-$250Q;MR=$500,000-$500Q;

User Account

All Pages