What is the profit at the profit maximizing level

Assignment Help Business Economics

Reference no: EM131109527

Call Us demand function is Q = 70 – 0.25P; MC = 16Q and total fixed cost (TFC) is 22% of total revenue (TR) at the revenue maximizing level. (i) Derive the AFC (average fixed cost) at the profit maximizing level. (05 MARKS) (ii) What is the profit at the profit maximizing level?

Reference no: EM131109527

Questions Cloud

What is the price and output this monopoly : What is the price and output this monopoly would produce at if unregulated. What is the socially optimal price and output for this monopoly? What is the fair return price and output for this monopoly?

According to the fisher effect : According to the Fisher effect, if the "real" rate of interest in a country is 4 percent and the expected annual inflation is 9 percent, what would the "nominal' interest rate be? A.5 percent B.13 percent C.9 percent D.36 percent E. 2.25 percent

Predict effects on equilibrium levels of aggregate output : For each of the following, predict the effects on the equilibrium levels of aggregate output (Y) and the interest rate (r). Be sure you make predictions for both Y and r! During 2000, the Federal Reserve was tightening monetary policy in an attempt t..

Medium-run implications of increase in interest rate targets : Are there specific differences between the short-run and medium-run implications of the increase in interest rate targets? Use the appropriate graphs (IS-LM and AS-AD) to illustrate your points. If relevant, include the liquidity trap in your analysi..

What is the profit at the profit maximizing level : Call Us demand function is Q = 70 – 0.25P; MC = 16Q and total fixed cost (TFC) is 22% of total revenue (TR) at the revenue maximizing level. (i) Derive the AFC (average fixed cost) at the profit maximizing level. (ii) What is the profit at the profit..

Draw diagram showing how agricultural price subsidy : Draw a diagram showing how agricultural price subsidy is given to farmers through establishing a price floor. Why economists consider this policy as inefficient? After all we support our farmers and prevent them from becoming bankrupt. Is there a be..

Federal funds rate discount rate simple money multiplier : Unable to borrow from other banks, University Bank is forced to turn to the Federal Reserve for needed funds. What is the interest rate the Federal Reserve will charge University Bank called? open market operations required reserve ration federal fun..

Bargaining agreements contain union standards clauses : Some collective bargaining agreements contain “union standards” clauses that prohibit the employer from subcontracting with firms that pay wages below those specified in the agreement. That is, the employer is prohibited from farming out work normall..

Differences in earnings indicate labor-market : Black men earn an average of 21% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar

User Account

All Pages