What is the firm average cost at this output

Assignment Help Business Economics

Reference no: EM131103602

The W Company is a member of the beef industry, which is perfectly competitive. The price of a beef is $60. The firm’s total cost function is TC = 100 + 10Q + 5Q2 where TC is total cost (in dollars) and Q is hourly output.

a. What output maximizes profit?.

b. What is the firm’s economic profit at this output?.

c. What is the firm’s average cost at this output?.

d. If other firms in the beef industry have the same cost function as this firm, is the industry in equilibrium? Why or why not?.

Reference no: EM131103602

Questions Cloud

Discount policy to increase the money supply : If the fed decides to use discount policy to increase the money supply what will it do? Be specific about who within the federal reserve system makes the decision, and who else is involved in the process.

Required reserves-excess reserves-some loans : Suppose that a bank has assets: some required reserves, some excess reserves, some loans, and some securities. If they change their strategy, by how much can they increase their loans?

Why marketers might change a positioning strategy : Discuss why marketers might change a positioning strategy over the course of a product/services life-cycle. Use a specific product or service to illustrate your argument.

Real exchange rate approach to exchange rate determination : The real exchange rate approach to exchange rate determination is based on: q$/€ = R$/€ × PEU PUS or R$/€ = q$/€ × PUS PEU a) Given PUS = 115, PEU = 105, and R$/€ = $1.35 per euro, compute the real exchange rate. write an equation to show a formula f..

What is the firm average cost at this output : The W Company is a member of the beef industry, which is perfectly competitive. The price of a beef is $60. The firm’s total cost function is TC = 100 + 10Q + 5Q2 where TC is total cost (in dollars) and Q is hourly output. What output maximizes profi..

Suppose identical price setting duopoly firms : Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms products as perfect substitutes. The market demand is Q=150-p

Preceding problem-federal reserve announces policy : In the preceding problem, suppose the Federal Reserve announces a policy of printing $100 in new bills every day and giving them to Janet Yellen’s mom. At the moment the Fed announces this policy, what happens to the demand for money? At the moment t..

What is the new price of an apple : Suppose the money supply is currently $400, all in the hands of individuals, and apples cost $1 apiece. How many apples can those individuals buy with the money in their pockets? (This is an incredibly easy question.) Suppose the Federal Reserve prin..

Assume americans currently import more than they export : Assume Americans currently import more than they export. Illustrate the effect of foreign- ers becoming more optimistic about their future incomes. What happens to the quantity of Americans’ net imports? What happens to American consumption? Suppose ..

User Account

All Pages