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Question: A firm in perfect competition faces the following total cost function:
C = 250X - 20X2 + 2X3
(a) What is the firm's supply function?
(b) At what output is marginal cost minimised?
(c) What is the firm's long-run equilibrium output and, assuming that every firm has the same cost function, price?
(d) In this long-run equilibrium, what is the value of profits?
(e) The firm is now a monopolist, with demand curve p = 550 - 10X. What are equilibrium price, output and profit?
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Business analytics can provide a significant benefit to organizations. If the organization utilizes business analytics and analyzes the data correctly, they will be able to make informed decisions that will benefit the organization in many ways.
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Suppose the profit on sofas is $200 and on chairs is $100. On a given day, the probability that a displayed sofa will be sold is .03 and that a displayed chair will be sold is .05. Mathematically model the following objective:
Use Lagrange multipliers to find maximum and minimum values of the function subject to a given constraint or constraints.
How will the imposition on firms of a fixed charge per annum for the privilege of operating affect.
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