A firmrsquos total cost function is tc 2q2 5q 10 the, Ask an Expert

Economics

A firm’s total cost function is TC = 2q^2 + 5q + 10 . The firm is a price taker and the market price for its product is $25. The firm also receives a subsidy from the government because it is operating in a high tech industry and the government encourages such high tech firms. The government has two subsidy options. In option 1, the firm can receive a fixed $25 subsidy. In option 2, the firm receives $4 for each unit of its products.

a. In option 1, how many will it produce to maximize total profit (including the subsidy)? How much is total cost? Profit before subsidy? How much subsidy does it receive? How much is its total profit including subsidy?

b. In option 2, how many will it produce to maximize profit (including the subsidy)? How much is total cost? Profit before subsidy? How much subsidy does it receive? How much is its total profit including subsidy?

c. Which option would the firm choose?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91571148

Have any Question?Write your Review or question?

Related Questions in Business Economics

Should we be renegotiating nafta yes or no if it is

Should we be renegotiating NAFTA? yes or no? If it is renegotiated, should it be replaced? What reasons would make it better in your point of view? What is the best argument you can make why NAFTA should or should not be ...

In the course of producing its output this firm causes

In the course of producing its output, this firm causes pollution. The government passes a law that requires the firm to stop polluting, and the firm discovers that it can prevent the pollution by hiring 0.2 workers for ...

In a population of phd students 50 have paid assistant

In a population of Ph.D students 50% have paid assistant ships. A random sample of n=200 students are chosen. What is the expected number of students who have paid assistant ships in this sample?

Match the definitionconsumer surplusproducer surplusthe

Match the Definition Consumer Surplus Producer Surplus The difference between the amount that buyers would be willing and able to pay for a good and the actual amount the buyer pays The difference between the minimum amo ...

According to kulish what is about the design of the euro

According to Kulish, what is about the design of the euro currency that lessens its appeal compared to prior national currencies?

Think about how you can provide point and confidence

Think about how you can provide point and confidence interval estimates in personal and professional settings

1 how can you implement a queue data structure using a

1. How can you implement a queue data structure using a doubly linked list? Do you think it is necessary to use a doubly linked list rather than a singly linked list or not? 2. If we need a add and delete function that c ...

From a deontological ethical framework construct an

From a deontological ethical framework, construct an argument either in favour of a minimum wage or against it.

A random sample of 90 textbooks has a mean price of 100 and

A random sample of 90 textbooks has a mean price of $100 and a standard deviation of $1450. Find a 92% confidence interval for the mean price of the textbooks. Then find a 99% confidence interval and compare your results ...

One study based on responses from 1 013 randomly selected

One study, based on responses from 1, 013 randomly selected teenagers, concluded that 43% of teenagers cite grades that their greatest source of pressure. Use a 0.05 significance level to test the claim that fewer than h ...

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