This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q TC = ... (Read 97 times)

frankwu

  • Hero Member
  • *****
  • Posts: 549
on: Jul 1, 2018
A perfectly competitive firm has total revenue and total cost curves given by:
 
  TR = 100Q
   TC = 5,000 + 2Q + 0.2 Q2
 
  a. Find the profit-maximizing output for this firm.
  b. What profit does the firm make?

Question 2

Which of the following examples best illustrates the concept of derived demand?
 
  A) An increase in the price of beef results in an increase in the demand for fish.
  B) The higher the demand for automobiles, the greater the demand for steel.
  C) The demand for Pepsi varies directly with the price of Coke.
  D) The demand for a good varies inversely with its price.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

memslove

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 1, 2018
Answer to Question 1

a. MR = 100
MC = 2 + .4Q
100 = 2 + .4Q
Q = 245
b. Profit = 100  245 - 5,000 - 2(245 ) - 0.2 (245 )2 = 7,005

Answer to Question 2

B


frankwu

  • Member
  • Posts: 549
Reply 2 on: Jul 1, 2018
Gracias!

bigcheese9

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ... Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ...
Cost Accounting: A Managerial Emphasis 16th Edition Cost Accounting: A Managerial Emphasis 16th Edition
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
What is the total resistance of the circuit in Figure 1? 150 What is the total resistance of the circuit in Figure 1? 150
A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her
Video: Dissociative Disorders (Part 1)

For a complete list of videos, visit our video library