Solution-Long run total cost function

Long run total cost function

Assignment Help Business Economics

Reference no: EM13841781

Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q³ - 4q² + 8q and the market demand function is Q = 2000 - 100p. Calculate:

(a) Each firm's individual output

(b) Equilibrium market price and quantity

(d) Profit per firm

Problem 2: If a monopolistic charges the same price for all of its output (i.e., it does not price discriminate), total revenue for the firm will be TR = P(Q)Q.

Show that:

(a) Total revenue is maximized when prices and quantities are set so that demand elasticity is -1.

(b) Explain why a monopolistic would ever never produce at an output level at which demand elasticity is -1 (part I). Or why a monopolist will always produce an output lower than that which would maximize its total revenue? (Part II). (Hint: What is the objective of a monopolist?)

Reference no: EM13841781

Questions Cloud

How does globalization influence and recreate social : How does globalization influence and recreate social, political, organizational, and business-oriented borders and processes, particularly with regard to cultural and communicative issues: meetings and clashes between civilizations and cultures?

Money or punishment will successful in building commitment : External rewards, such as money or punishment, will be successful in building commitment _____.

Current trend regarding job design in OD programs : A current trend regarding job design in OD programs is to _____.

Emergency planning is an ongoing process : Emergency planning is an ongoing process. As disasters strike other regions, we learn much about practices we can implement in our own region to promote safety. What are the benefits of updating emergency plans? How often do you think emergency plans..

Long run total cost function : Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q3 - 4q2 + 8q and the market demand function is Q = 2000 - 100p. Calculate:

Situations when confidentiality or accuracy is critical : As was evident in the wake of the bombing at the Boston Marathon in 2013, the press and social media can play a very significant role in the flow of information during an emergency event. How can they protect the flow of information these days in si..

Why you picked the software and and how you will use : You have a budget of $1000 for software. Please pick at least 5 software programs you will be using frequently, the prices of the software, why you picked the software, and how you will use the software

Reengineering-od intervention-incorporates : Reengineering, as an OD intervention, incorporates _____.

Which technology has improved emergency management : While it is easy to see the ways in which technology has improved emergency management, it has also introduced some challenges. What is one specific challenge you believe technology has posed for emergency management? How can that challenge be overco..

User Account

All Pages

Long run total cost function

Reference no: EM13841781

Reference no: EM13841781

Questions Cloud

Reviews

Write a Review

Business Economics Questions & Answers

Economics assignment

Demand and supply curves

Long-run perfectly competitive equilibrium for the firm

Supply and demand diagrams

Case study: fisher-price toys

Draw the production possibility curve

Tax revenue

Maximize total welfare

Difference between the cv and the ev

Depict von neumann-morgenstern utility index u in a diagram

What is the market solution

Calculate gross national product and net national product

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT