What is the rms average cost at this output

Assignment Help Business Economics

Reference no: EM131239850

The White Company is a member of the lamp industry, which is perfectly competitive. The price of a lamp is $50. The rm's total cost and marginal cost functions are:

TC = 1;000 + 20Q + 5Q2

MC = 20 + 10Q

Where TC is total cost and MC is marginal cost (in dollars) and Q is hourly output.

a. What output maximizes pro t?

b. What is the rm's economic pro t at this out- put?

c. What is the rm's average cost at this output?

d. If other rms in the lamp industry have the same cost function as this rm, is the industry in equilibrium? Why or why not?

Reference no: EM131239850

Questions Cloud

How many ways are there to feed 12 spinach stems : How many ways are there to feed 12 spinach stems (of different lengths) to four ducks such that the grey duck gets five spinach stems, the white duck gets five spinach stems, and the pale-grey and black ducks get one spinach stem each?

Some of the largest import tariffs-tax on imported goods : Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest US tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37%, and that on..

Components used to process data : Which of the following would be a description of a system unit? The module that interprets and carries out computer instructions. Components used to process data into information that are enclosed in a case or chassis

What networks does the backbone connect : Survey the BNs used in your organization. Do they use Ethernet or some other technology? Why?- What networks does the backbone connect?

What is the rms average cost at this output : The White Company is a member of the lamp industry, which is perfectly competitive. The price of a lamp is $50. The rm's total cost and marginal cost functions are: What is the rm's economic pro t at this out- put? What is the rm's average cost at th..

What are the advantages and disadvantages of vlans : What are the advantages and disadvantages of VLANs? - How can you improve the performance of a BN? - Why are broadcast messages important?

Prompting an appropriate message : Write a program in Java which should accept the following information from the user after prompting an appropriate message:

How many ways are there to pair them up : In a ballroom dance class, participants are divided into couples for each drill session. One partner leads and the other follows for three minutes, and then the couple switches roles for the next three minutes.

What challenges do corporations face : What challenges do corporations face with regards to social media? Do companies have social media policies for sharing information? Provide an example.

User Account

All Pages