Firm maximize profit, At what level of output will this

Firm maximize profit

Assignment Help Business Economics

Reference no: EM138218

Q1. Recall that ABC Company has periodically borrowed funds but contemplates a stock or bond offering so that it can expand by acquiring some other businesses. It has contacted Kelly Investment Company which is a securities firm.

Explain how Kelly Investment Company can serve ABC and how it will serve other clients as well when it serves ABC. Also explain how ABC Company can serve Kelly Instrument Company.

Q2. A firm has a fixed cost of $5000 and a constant marginal cost of production of $500 per unit produces. What is the firm's total cost function? And average cost function? If the firm faces a demand function p=40500-2q, where p and q are the market price and quantity demanded respectively, at what level of output will this firm maximize profit? Elucidate what is the level of profit for every unit of output produced at equilibrium?

Reference no: EM138218

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