Question
Offered Price $10.00

A competitive firm estimates its average variable cost function to be

Question # 00183033
Subject: Economics
Due on: 01/30/2016
Posted On: 01/30/2016 11:07 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
458
Tutorials:
460
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

A competitive firm estimates its average variable cost function to be

AVC = 125 - 0.21Q + 0.0007Q2 .

The firm's total fixed cost is $3,500.)
-At what level of output does the AVC reach its minimum? What is the AVC at this output level?
-Suppose the price of the product is P = $125. Determine the profit maximizing level of output? Compute the firm’s profit. If the firm is losing money, should it produce? Explain.

Tags cost function variable average firm estimates competitive output profit cost firms firm determine product price levelsuppose explain maximizinglevel money shouldit losing atthis compute produce does 021q 00007q2 function averagevariable estimates total fixed reach competitive level 3500at minimum

Tutorials for this Question
Available for
$10.00

A competitive firm estimates its average variable cost function to be

Tutorial # 00177838
Posted On: 01/30/2016 11:08 AM
Posted By:
Best Tutors for school students, college students shri21
Expert tutors with experiences and qualities
Questions:
458
Tutorials:
460
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …(d/dQ)(AVC) x -0 xx + 0 xxxxx For AVC xx be xxxxxxxx xxxxxxxxxxx = x -0 21 x 0 0014Q x 0 x x 0 xxxx 0014 = xxx AVC when x = xxx xx 125 xxx 0 21(150) x…
Purchase this Tutorial @ $10.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...