This topic contains a solution. Click here to go to the answer

Author Question: A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q TC = ... (Read 47 times)

frankwu

  • Hero Member
  • *****
  • Posts: 549
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
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
Great answer, keep it coming :)


Jsherida

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

For a complete list of videos, visit our video library