Suppose that you are given a firm's demand function as Q-2000-20P And firm's cost function is...
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Suppose that you are given a firm's demand function as Q-2000-20P And firm's cost function is given as: TC-0.05Q +10,000 (i) Find the firm's total revenue (TR) and her marginal revenue (MR) (2marks) (2marks) (2marks) (ii) Calculate the firm's marginal costs (MC) (iii) Calculate the firm's average costs (iv) From the information given above, calculate the firm's profit maximizing output and price levels (Q* and P*) (v) Calculate the firm's maximum profit (II) (vi) Show that this is the true maximum profit by using the second order conditions as a test (2marks) (5marks) (2marks) Suppose that you are given a firm's demand function as Q-2000-20P And firm's cost function is given as: TC-0.05Q +10,000 (i) Find the firm's total revenue (TR) and her marginal revenue (MR) (2marks) (2marks) (2marks) (ii) Calculate the firm's marginal costs (MC) (iii) Calculate the firm's average costs (iv) From the information given above, calculate the firm's profit maximizing output and price levels (Q* and P*) (v) Calculate the firm's maximum profit (II) (vi) Show that this is the true maximum profit by using the second order conditions as a test (2marks) (5marks) (2marks)
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The detailed answer for the above question is provided below i The firms total revenue TR is given by the equation TR P x Q Substituting the given dem... View the full answer
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