What is the dollar value of the firm total fixed cost

Assignment Help Microeconomics
Reference no: EM132518987

The table above gives the short-run total cost function for a typical firm in a perfectly competitive industry.

a. What is the dollar value of the firm's total fixed cost?

b. Calculate the marginal cost of producing the first unit of output.

c. If the price the firm receives for its product is $20, indicate the firm's profit-maximizing quantity of output and explain how you determined your answer.

d. Given your results in part (c), explain what will happen to the number of firms in the industry in the long run.

e. Assume that this firm operates in a constant-cost industry and has reached long-run equilibrium. If the government imposes a per-unit tax of $2, indicate what will happen to the firm's profit-maximizing output in the long run.

Reference no: EM132518987

Questions Cloud

Determine the emergency and disaster management : Demonstrate the ability to create a field of study project that uses both research-based and personal content while using presentation software
What is the impact of social categorization on culture : Does cognitive distinctiveness of social schemata account for social categorization? Why or why not? What is the impact of social categorization on culture?
What about the customer confidence index in the usa : What about the customer confidence index in the usa? Is Demand pull or cost push concept is associated with it?
Explain diagnostic criteria for language and speech disorder : Explain the diagnostic criteria for a Language and Speech Disorder in children and adolescents, and analyze the possible genetic, biological
What is the dollar value of the firm total fixed cost : The table above gives the short-run total cost function for a typical firm in a perfectly competitive industry.
What criteria should john use to decide which method is best : Discuss the advantages and disadvantages of these three options. What criteria should John use to decide which method is best for him?
What is the business type : Linda owns a backhoe and performs small, residential construction projects. She doesn't have any employees, wants to expand her little company
What is the medial forebrain bundle : Discuss the evidence for and against its involvement in reward.In addition, review the evidence showing that the brain's dopamine pathways are critically
Discuss your ideas about your favorite counseling theory : Discuss your ideas about your favorite counseling theory or theories, how would you plan to respond to clients in terms of their cognitive and affective.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is secular stagnation?

What is secular stagnation?

  Along the transition according to solows model

Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model:

  How many years does it take to recover the capital cost

A factory reorganization is expected to save $40,000 per year. If the interest rate is 12%, how many years does it take to recover the capital cost

  Introduction of ancient communities

Introduction of ancient communities needs and wants of the ancient communities information on system practised in exchanging their goodslogical arrangements of facts conclusion

  Calculate price elasticity of demand in first and second

a number of towns in the united states have begun charging their residents for garbage pickup based on the number of

  Why medicare ration healthcare is financially worthwhile

Why might Medicare ration healthcare according to treatment that is "financially worthwhile" as opposed to providing as much treatment as is needed.

  Determining alternative wage

Consider a sharecropper whose contract calls for him to receive ¾ of the output produced in the farm on which he works. Suppose that the value of the marginal product of labor on the shared cropped land is given by 80-L. Where L stands for hours o..

  Discount rate affect the decisions of banks

What are the factors that would influence the Federal Reserve in adjusting the discount rate and how does the discount rate affect the decisions of banks in setting their specific interest rates?

  Why consumers respond to buy one get one half off

Why do you think consumers respond to the "Buy One Get One Half Off" sales promotion and what principle of economics does this behavior reflect?

  What important factors should you take into account

As economic advisor to the Minister, what important factors should you take into account when advising him? Explain why

  Perfectly competitive industry except in one respect

Merlin is like all other managers in a perfectly competitive industry except in one respect: Because of his great sense of humor, people are willing to work for him for half the going wage rate.

  How enterprise systems improve areas of the business

Most companies have recognized the benefit of the consistent use of information systems to support the daily work of individual employees as well as unifying.

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