Question: A firm has the following total cost function: C = $ 2 , 6 0 0 , 0 0 0 + $ 1 , 8

A firm has the following total cost function:
C=$2,600,000+$1,890Q+$50Q2
Assume the firm currently produces Q=230 units.
a. Calculate the firm's marginal cost (MC).
b. Calculate the firm's average cost (AC).
c. Calculate the firm's average fixed cost (AFC).
d. Calculate the firm's variable cost (VC).
e. Calculate the firm's average variable cost (AVC).
f. Assume Q=230 units is the firm's breakeven quantity. What price is the firm currently charging customers for its product?

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:

A firm has the following total cost function: C = 50 + 24q - 12q2+ 3q3, which means it has MC = 24 - 24q + 9q2. What is the minimum price necessary for the firm to stay open in the short run?

Q:

Provent Sdn. Bhd produces two products, pros and cons, in fixed proportions on a one-toone basis, so that for every one pro produced one con is produced. The firm has the following total cost...

Q:

:Help me answer the following. Suppose there are two types of used cars: peaches and lemons. A peach is worth $3000 to a buyer and $1900 to a seller. A lemon, on the other hand, is worth $1000 to a...

Q:

1. Bob's electronic bike shop's production function is given by q = -5 L 3 + 20L 2 +10L. The marginal product of labor is A) MP = 10 + 40L -15L 2 B) MP = 10 + 20L -5L 2 C) MP = 10L D) MP = 10 + 20L...

Q:

6. A profit-maximising firm faces the following total cost function for any production quantity, q, greater than zero TC = 40 + 10q + 0.1q2 and TC = 0 if q = 0. There are 200 firms in this industry,...

Q:

Assume that a competitive firm has the total cost function: TC=1q 3 40q 2 +880q+2000 TC=1q3-40q2+880q+2000 Suppose the price of the firm's output (sold in integer units) is $550 per unit. Use...

Q:

Please find the attached multiple choice questions: Answers and explanations please. 25. A firm in monopolistic market faces the following demand and total cost equations for its product as follows:...

Q:

A profit-maximising firm faces the following total cost function for any production quantity, q, greater than zero TC = 40 + 10q + 0.1q2 and TC = 0 if q = 0. There are 200 firms in this industry,...

Q:

1. Suppose there is a decrease in the price of gasoline. With the aid of a demandand-supply diagram, explain how this will affect the equilibrium price and quantity in the market of gasoline cars. (6...

Q:

1. Suppose a firm has the following production function = ^2*^2 . Calculate returns to scale. Does it have increasing, decreasing, or constant returns to scale? 2. Suppose a firm has following total...

Q:

When a general journal entry is used to record sales returns, the credit of the entry must be posted twice. Does this cause the trial balance to be out of balance? Explain.

Q:

Using your knowledge of the college environment, determine the functional dependencies that exist in the following table. After determining the functional dependencies, convert this table to an...

Q:

Question 1 3 of 2 6 - 1 5 Sheffeld Conpany, has these account balances at December J 1 . 2 0 2 7 . Notes payable [ $ 2 . 2 0 0 0 due ahter 1 2 3 1 ? 2 at , $ 1 0 1 , 0 0 0 Unearned vervice revenue 6...

Q:

What is the nature of the relationship between the winners and the claimants? What factors do the courts consider in determining whether a partnership exists? What duties do partners owe to each...