Marginal and average cost, Managerial Economics

Assignment Help:

In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is:

912_aa.png

where p is the price for one cone of ice cream. All ice cream producers in the city have the similar total cost function:

1607_aa.png

where Qi  represents the number of ice cream cones firm i makes. Suppose that the market is in equilibrium.

a) Derive the firms' marginal and average cost. 

b) Compute price and quantity in equilibrium.

 

 

 


Related Discussions:- Marginal and average cost

Break-even quantity., Bikes-for-two, Inc., produces tandem bicycles. Its co...

Bikes-for-two, Inc., produces tandem bicycles. Its costs have been analyzed as follows: VARIABLE COST Materials $30/unit Manufacturing labor 3 hours/unit ($8/hour) Assembly labor 1

, show how scarcity and opportunity cost are useful in decisionmakin

show how scarcity and opportunity cost are useful in decisionmaking

Distinguish between moral hazard and adverse selection, Question: i) T...

Question: i) The manager of Top Rock Company is introducing a new product that will yield $200 millions in profits if the economy does not go into recession. However, if a rec

Microeconomic objectives of government, The Microeconomic objectives of gov...

The Microeconomic objectives of government These are the policies which are concerned with the allocation and distribution of resources to maximize social welfare. 1. Allo

the total cost of giving this insured service, The services of a certified...

The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this

Brief note, principles of time perspectives

principles of time perspectives

Kinds of bargaining arrangements, Kinds of Bargaining arrangements Bas...

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

Methods of demand forecast which rely on quantitative data, Methods which r...

Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo

Write Your Message!

Captcha
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