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

Author Question: For each of the following cost functions, find MC, AC, and AVC. a. TC = 20,000 + 10 Q b. TC = ... (Read 58 times)

rlane42

  • Hero Member
  • *****
  • Posts: 594
For each of the following cost functions, find MC, AC, and AVC.
 
  a. TC = 20,000 + 10 Q
  b. TC = 18,000 + Q + 0.2 Q2

Question 2

A firm practicing group price discrimination across two countries sets MR = common MC and therefore
 
  A) price will be the same in both countries.
  B) price will be twice MR.
  C) profit will be the same in both countries.
  D) price will likely be different in each country.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

phuda

  • Sr. Member
  • ****
  • Posts: 348
Answer to Question 1

a. MC = 10
AC = (20,000/Q) + 10
AVC = 10
b. MC = 1 + 0.4Q
AC = (18,000/Q) + 1 + 0.2Q
AVC = 1 + 0.2Q

Answer to Question 2

D




phuda

  • Sr. Member
  • ****
  • Posts: 348

 

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?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library