Computing mc and mr for given functions

Assignment Help Microeconomics
Reference no: EM1371705

Employ the following equation to demonstrate why the firm producing at the output level where MR=MC will also be able to maximize its total profit (i.e. be at the point where marginal profit is equal to zero).

P=170-5Q
TC=40+50Q+5Q^2

Reference no: EM1371705

Questions Cloud

Question about coase theorem : Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
Proposed merger between rite aid and revco : List their yearly sales and extent of operation, what are some of their incentives to consolidate, list and describe the firms in the industry, explain the product,
Concentration ratio : Suppose as to what might be the four firm concentration ratio for corn growers in the US
Investigate a performance in sustainable business : Investigate Starbucks Coffee Company commitment to and performance in sustainable business and discuss Starbucks Coffee Company in terms of sustainability, addressing the following:
Computing mc and mr for given functions : Employ the following equation to demonstrate why the firm producing at the output level where MR=MC will also be able to maximize its total profit
Computing various production costs : Calculate the marginal and average variable product of each unit of labor input. Hint: plot your Units of labor and Units of Output vertically. Calculate total, average total, average variable, and marginal costs.
Global trade association and american gas association : Write down a five paragraph introduction detailing the purposes and activities of the organization. Consider whether there're any groups opposed to them and why.
What are economies of scale : What are Economies of Scale? Why is it Significant to understand this concept? How can one's knowledge of Economies of Scale contribute to decision making processes in organizations?
Production-cost analysis in short and long run : Employ the information in the above table to compute th average product (AP) and marginal product (MP). At the production level of 200,000 chips, is the company's average variable cost decreasing, at a minimum or increasing?

Reviews

Write a Review

Microeconomics Questions & Answers

  Derivation of long-run supply curve

Would the accumulation of historical prices and quantities exchanged in the market establish a long-run supply curve? How would the historical relationship differ from how firms (and economists) envision today's long-run supply in the industry?

  Examine behavior of increasing cost industry

Assume you own the remodeling company. You're currently earning short-run profits. The home remodeling industry is an increasing cost industry. In the long run, what do you expect will happen to:

  Determining price of labor and capital

Given production function Q= 100(L^0.5)(K^0.5), where L = labor hours per unit time, K=machine hours per unit time, and Q=output per unit time.

  Market dominance

Please explain why international strategy is important. What is the difference between domestic and international strategic planning?

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Average total cost curve

A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + .5Q. Find out the profit-maximizing level of output.

  Phases of production-law of diminishing returns

Assume each worker is paid $10 per hour and works a 40-hours week. How many workers should the firm hire if the price of the output is $ 10? Suppose the price of the output falls to $7.50.What do you think would be the short-run impact on the firm..

  Behavior of profit-maximizing firms

Consider a firm which employs capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. As well suppose that total labor costs to the firm are $45,000 annually.

  Application of price elasticity of demand

The Haas Corporation's executive vice president circulates the memo to the firm's top management in which he argues for reduction in price of firms product. He says such a price cut will raise the firms sales and profits.

  Elasticity of price

Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not? Explain why this model violates the assumption of no perfect collinearity.

  Information about market demand curve

Supposing the marginal cost curve is for a competitive industry as a whole, find out the profit-maximizing level of output and price.

  Income and substitution effects

What happens to the student's budget line? Illustrate the change with new books on the vertical axis. Is the student worse off or better off after the price change. Explain.

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!

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