(Answered) 1 a firm has a total cost of tc05q215q300 where q is its

Economics

1) A firm has a total cost of TC=0.5q2+15q+300 where q is its output, and faces a demand for its product given by q=100-3p where p is the price it charges.

a. Find the profit maximizing price and output for this firm.

b. Is it making a profit? If not, why does the firm keep producing in the short run?

c. If the state imposes a license fee of $100 on the firm, will it continue producing in the short run? How about the long run? Explain.

d. If the state taxes the firm at a rate of 0.2 per unit of output, so there is an additional cost of 0.2q what will happen to the firm's output and price in the short run? Explain.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92716980
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

A 1000 utility bond with 14 years remaining before maturity

A $1000 utility bond with 14 years remaining before maturity can now be purchased for $760. It pays interest of $20 each 6-month period. What rate of return is earned by purchasing the bond at the current market price pl ...

If a firms total cost function is given byt c

If a firm's total cost function is given byT C= 115,000Q-500Q2+Q3, what range of output does the firm have economies of scale?

You are given the sample mean and the population standard

You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. A random sample of 44 gas grills has a mean price of ...

In this question are you just using the empirical ruleyou

In this question are you just using the empirical rule? You know that your population is normally distributed with a mean of 100 and a standard deviation of 15. Using the empirical rule as a rough approximation, what is ...

What does an increase in the savings rate do for a countrys

What does an increase in the savings rate do for a country's output? Why doesn't every country do that?

Consider a country that has been producing a lot of oil and

Consider a country that has been producing a lot of oil and suppose that from one year to the next its oil wells run out. The country will be poorer than previously. According to the two definitions above, is it in a rec ...

Suppose you are going to receive 14100 per year for six

Suppose you are going to receive $14,100 per year for six years. The appropriate interest rate is 6.9 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round i ...

Link changes in unemployment inflation wages and gdp to one

Link changes in unemployment, inflation, wages, and GDP to one another and how they impacted each other during periods of economic decline (recessions) and periods of economic growth (expansion) over the past 10 years.

A survey of 455 citizens found 304 of them favor a new bill

A survey of 455 citizens found 304 of them favor a new bill introduced to the city. We want to find a 95% confidence interval for the true proportion of the population who will favor the bill. What is the lower limit of ...

What role for governmentin chapter 3 wheelan describes a

What Role for Government? In Chapter 3, Wheelan describes a number of ways in which the "government is your friend" in a well-functioning society and economy. List and explain two ways that, in your everyday lives, there ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert