Question: If a competitive firm s cost function is C ( q ) = a + bq + cq 2 + dq 3 , wherea,b ,

If a competitive firms cost function is C(q)= a + bq + cq2+ dq3,wherea,b,c,andd are constants, what is the firms marginal cost func- tion? What is the firms profit-maximizing condi- tion? (Hint: See Solved Problem 8.3.)

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:

Analyze the outdoor lifestyle data given in Internet and Computer Exercises 2 of Chapter 15. Do the three groups based on location of residence differ on the importance attached to enjoying nature,...

Q:

Kindly explain the following 12. A monopolist has a single production plant in California with a total cost function of c(Q) = =Q2, where Q is total output. The good can be sold to two separate...

Q:

Suppose a competitive firm has cost function: C(q) = a + bq + cq 2 + dq 3 , where a,b,c,d are constants. What is the marginal cost function? What is the firms variable and average cost of output, in...

Q:

Part one Explain the following. 1. Compared with a perfectively competitive market a monopoly is inefficient because a. it raises the market price above marginal cost and produces a smaller output....

Q:

In need of the solutions to this questions. produced by firm 1 and firm 2 in a SPNE? Find the market price po and firm profits, nj and no. 13.3. Suppose there are n identical firms in an oligopoly...

Q:

Question 2. ECO 202 Assessment Problem: In this essay you will be asked to reflect the following issues using the supply and demand model. 1. There are two important inputs in the production of...

Q:

Macroecon 3 3. The short-run cost function of a firm is given by C(q) = 200 + 55q, where C(q) or T C(q) is total cost, and q is the total quantity of output, both measured in thousands. (a) What is...

Q:

tax Consider the market for apple juice. In this market, the supply curve is given by QS = 10PJ 5PA and the demand curve is given by QD = 100 15PJ + 10PT , where J denotes apple juice, A denotes...

Q:

Exercise #1. A firm produces output using the technology y= -KLi, 1,000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the yearly output. The...

Q:

11 Which of following is an example of a cartel? A.)automotive industry B.)health care industry C.)airline industry D.)OPEC ^ 12 Perfectly competitive market structures have an incentive to enter or...

Q:

. Solve the following attachments. 3. The market illustrated below has inverse demand p(Q) = 130 - 30 and industry-wide marginal cost MC(Q) = 10 + 2Q. If production is competitive, this is the market...

Q:

Murray Motor Company wants you to calculate its cost of common stock . During the next 12 months, the company expects to pay dividends (D1) of $2.50 per share, and the current price of its common...

Q:

An ideal Otto cycle has a compression ratio of 8.3. At the beginning of the compression process, air is at 100 kPa and 25oC, and 1000 kJ/kg of heat is transferred to air during the constant volume...

Q:

5 Write a 100-word paragraph explaining the use of the hummingbird as a structural device. Think about why the writer introduces it at this point in the story. Use evidence from the text to support...

Q:

OWN WORDS PLEASE I HAVE 30 MINUTES TO ANSWER!!! Distinguish resolutory period and suspensive period. What does pure obligations mean? What does conditional obligations mean? Distinguish reciprocal...