Firms total cost function is given by the equation

Assignment Help Business Economics

Reference no: EM131009725

A firm's Total Cost function is given by the equation: TC = 4000 + 5Q + 10Q2 a. Write an expression for each of the following cost concepts: -total Fixed Cost -average Fixed Cost -Total Variable Cost -Average Variable Cost -Average Total Cost -Marginal Cost b. Is this a short-run cost curve or a long-run cost curve? Explain. c. Determine the quantity that minimizes average total cost. Demonstrate that the relationship between marginal cost and average cost holds.

Reference no: EM131009725

Questions Cloud

The salvage value of the tractor is expected : Schaefer organic farms purchased a new tractor at the cost of $80000. Annual operating cash inflows are expected to be $30000 each year for four years. At the end of the tractors useful life, the salvage value of the tractor is expected to be $5000. ..

Concept of some minimum standard of living for in society : Your paragraph should discuss whether income distribution in 2011 is equitable or not. Support your assertion with at least two reasons why you believe your assertion is an acceptable way to look at the question. In your post, consider how our person..

Calculate the efficiency loss of the monopoly : A monopolist has demand curve given by P = 100 –Q. The total cost is given by TC = 16 + Q2. Find the monopolist’s profit maximizing quantity and price. How much economic profit does the monopolist make? If this was a perfectly competitive firm, what ..

Draw representative isoquants for cigarette-rolling : In the early 1880’s cigarette-rolling machinery became available. Prior to this all rolling was done by hand. The machines dramatically cut the cost of rolling cigarettes. But they were not fully automatic—they needed the permanent presence of an ope..

Firms total cost function is given by the equation : A firm's Total Cost function is given by the equation: TC = 4000 + 5Q + 10Q2 a. Write an expression for each of the following cost concepts: -total Fixed Cost -average Fixed Cost -Total Variable Cost -Average Variable Cost -Average Total Cost -Margin..

State whether the value of the dollar will appreciate : For each of the following three scenarios, state whether the value of the dollar will appreciate, depreciate or remain the same relative to the Japanese yen? Japan imposes new restrictions on the ability of foreigners to buy Japanese companies and re..

Two countries have the same levels of productivity : Economies of the Countries X and Y satisfy the Solow model with α = 1/3. In Country X the rate of investment is 7%, and in Country Y it is 28%. The two countries have the same levels of productivity, A, and the same rate of depreciation, δ. 8. What i..

Stores represents a means of price discrimination : Ginny and Lucia are debating the use of coupons by grocery stores. Ginny says, "The use of coupons in grocery stores represents a means of price discrimination.

Define the rivalness ratio of a good in a way : Define the rivalness ratio of a good in a way that could be understood by someone who has taken principles of microeconomics course, but has not studied any other economics. Explain how we can tell that the rivalness ratio of a good does not depend o..

User Account

All Pages