Consider the following Demand (Price and Marginal Revenue) and Cost (Total and Marginal) relationships expressed as functions

Fantastic news! We've Found the answer you've been seeking!

Question:

Consider the following Demand (Price and Marginal Revenue) and Cost (Total and Marginal) relationships expressed as functions of Q: Price = P(Q) = 310 – 2Q TC = TC(Q) = 3500 + 70Q + Q2 MR = MR(Q) = 310 – 4Q MC = MC(Q) = 70 + 2Q

a. What is the profit-maximizing level of output? What is the price at that level?

b. Should the firm continue operating in the short run? In the long run?

c. At the level of output you determined in (a), what is the lowest price at which this firm should continue producing in the short run?

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Posted Date: Feb 19, 2024 12:56 AM

See More Questions

Wallace and Brace CPA assign a partner to screen and recommend (or decline) potential clients prior to acceptance. Discuss at least 4 specific issues which should have been considered prior to...
Fixed amount of Land for Oil Drilling: Suppose that your oil company is part of a competitive industry and is using three rather than two inputslabor , capital k and land L to produce barrels of...
How do tax treaties and tax rates affect the decisions that businesses make about the global operations of their business? Should businesses be allowed to shift profits to avoid taxes? Why or why not?
Let B > 0. Show that the maximum of (x 1 , . . . , x n ) = x 1 + + x n subject to x 2 1 + + x 2 n = B 2 is nB. Conclude that for all numbers a,..., an lal++lanl n(a + + a) / 1/2
A flyer from one of the world's largest brokers says, "Most personal investment managers base their fees on a percentage of assets managed. We believe this is in your best interest because your...
American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid...
Assuming the short rate process of Exercise 2 and risk-neutral probabilities of .5 , consider a zero-coupon bond that pays $\$ 1$ at time $t=2$. Find the value at time $t=0$ of this bond in two...
Assume the same facts as in Exercise 20-22, except that Grand Devices now uses a backflush costing system with the following two trigger points: In Exercise 20-22, There are no beginning inventories...
This has to do with linear programming. Creatine L-Glutamine BCAAs Cost (grams) (grams) (grams) ($) Xtendo 0 2.5 7 0.80 (Scivation) RecoverMode 3 3 5 1.20 (Evolution Nutrition) Strongevity 3 1 0 1.00...
1. Consider the function f(x)= Main Algebraic Solution: 7-x = +2. Algebraically determine the domain and all intercepts. x+6 Check Your Solution:
INSTRUCTIONS Description 1. OBJECTIVE This practical exercise is designed to help choose the best alternative or proposal by performing an economic analysis. 2. MATERIALS NEEDED a. EA Handout Format...
-What relevant background information pertaining to what to expect from Tracy's educational and behavioral performance is provided? Where did you find this information (could be multiple places)?...
Cul es el objetivo de la norma de salvaguardias de la FTC? Para proteger la privacidad del consumidor. Garantizar la seguridad y confidencialidad de los registros e informacin de los clientes....
2) How much success will you strive for - a little, average, or a significant amount, and how will you know that you have arrived.
Would someone be able to assist me with this? Image transcription text Find instances from news sources of Fraud in the HR/PAYROLL/Checks area and post a link to the article with your discussion of...
Consider the rotational fine structure of CuH (a) Draw the molecular orbital diagram for CuH for both electronic states. (b) Explain the different transitions that these lines correspond to (the...
Time Solutions, Inc. is an employment services firm that places both temporary and permanent workers with a variety of clients. Temporary placements account for 70% of Time Solutions' revenue;...
Suppose that a firm's production function is given by Q = KL + K, with MPK = L + 1 and MPL = K. At point A, the firm uses K = 3 units of capital and L = 5 units of labor. At point B, along the same...
What is a strategic move? Why must strategic moves be hard to reverse in order to have strategic value?
Dave currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3. If the price of one hot...
A stock price is governed by \[\frac{\mathrm{d} S}{S}=\mu \mathrm{d} t+\sigma \mathrm{d} z\] where $z$ is a standardized Wiener process. Interest is constant at rate $r$. An investor wishes to...
At the beginning of April one year, the silver forward prices (in cents per troy ounce) were as follows: The carrying cost of silver is about 20 cents per ounce per year, paid at the beginning of...
Suppose that a forward contract on an asset is written at time zero and there are $M$ periods until delivery. Suppose that the proportional carrying charge in period $k$ is $q S(k)$, where...

Consider the following Demand (Price and Marginal Revenue) and Cost (Total and Marginal) relationships expressed as functions

Question:

Expert Answer:

We need to find the profitmaximizing level of output determine whether the firm should continue oper... View the full answer

Microeconomics

Students also viewed these economics questions