Question: 6. Given a firm's demand function Q-90+2P=0 and its average cost function, AC=Q^2-8Q + 57 + 2/Q, find the level of output which (a) maximizes

6. Given a firm's demand function Q-90+2P=0 and its average cost function,

AC=Q^2-8Q + 57 + 2/Q, find the level of output which

(a) maximizes total revenue;

(b) minimizes marginal cost;

(c) maximizes profit.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

CH13-PRICE SEARCHING | ECON14. Suppose a price searching firm faces a demand curve given by Q=30- .5P, and has an average cost curve fiven by AC=8.(a) Find the equations for the marginal revenue...

Q:

Please solve all the Questions. All the information required is as provided in the questions. QUESTION FOUR (a) Briefly discuss the theoretical relationship between money supply and Inflation. (6...

Q:

Hello expert, pease answer these (quantitive methods) questions. thank you so much Please solve the following exercises and write complete solution. Question # 1: An electronics firm decides to...

Q:

1. In the short-run, there are three stages of production. Identify or define each of these and then discuss why a Manager would never knowingly produce in either Stage I or Stage III. 2. Suppose you...

Q:

All questions should be well explained 47. Several months ago, an investor sold 100 units of a one-year European call option on a nondividend-paying stock. She immediately delta-hedged the commitment...

Q:

Please answer these all questions Question 1 Technical efficiency: Group of answer choices Requires getting maximum output from the resources used in production. Requires covering the opportunity...

Q:

1. An increase in the price of tea will have which effect in the market for coffee? (Assume that coffee and tea are substitutes). a) an increase in both price and quantity exchanged. b) a reduction...

Q:

A monopolist faces the inverse demand function described by p = 60 -2y where y is output. The monopolist has no fixed cost and the marginal cost is $4 at all levels of output. a. What is the marginal...

Q:

Answer all giving exexplanati 1.On 31 December 2001, an inexperienced bookkeeper working for Wanji, a sole trader extracted a trial balance. Due to errors committed by the bookkeeper, the trial...

Q:

Explain the attached quotation below You may need to use the appropriate appendix table or technology to answer the question. Last year, 43:4 of business owners gave a holiday gift to their...

Q:

For the geared system shown in Figure, assume that shaft inertias and the gear inertias l1, l2, and I3, are negligible. The motor and load inertias in kg-m2 are I4 = 0.03 I5 = 0.15 The speed ratios...

Q:

Painting Supplies suffered a terrible tornado, and its entire merchandise inventory was destroyed. Painting Supplies needs to estimate its ending merchandise inventory to collect insurance. The...

Q:

if ac ompany reported a cash flow per share as 5 . 6 7 do they use IFRS or ASPE?

Q:

Next question number of movie screens for 29 years. Complete parts a through belo The table available below contains data on a nation's total box office grosses ($billion), total number of admissions...

Q:

9. Discuss the statement: If the actors mainly act on the basis of a view of human-ity as driven by self-interest, and incorporate this idea into their models, they may end up with their premises...

Q:

5. What does it mean when we say the evaluation comes before the presenta-tion?.

Q:

1. Discuss the following statements: a) Predetermined is not the same thing as predictable. b) When we are aware of the consequences of our behaviour, we can change our behaviour. c) What we know is...