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Question - Jack's faces the following demand function for its Jack in the Boxes: Q = 13000 - 8P. Jack produces the Jack in the Boxes in two facilities. The cost functions in each facility are: TC1 = 110,000 + 40Q1 + .09Q12 TC2 = 200,000 + 80Q2 + .05Q22 1. Calculate the Q at which average cost is a minimum in facility
1. What is minimum average cost?
2. Graph the average cost, marginal cost and average variable cost functions for facility 1.
3. Calculate the profit maximizing amount of Q to make and the profit maximizing price.
4. Calculate the amount of Q that will be made in each facility.
5. Calculate the overall profits of the firm.
6. Calculate the marginal revenue at the profit maximizing amount of Q.
Assignment Instructions
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