Acompetitive firmrsquos cost of production is cq , Ask an Expert

Economics

A competitive firm’s cost of production is C(Q) = Q^3-20Q^2+125Q. The firm’s problem is to choose the value of Q> or = 0 that maximizes its profit.

(a) If the market price is 48, then find all points (if any) that satisfy the FOC, and determine whether each of those points satisfies the local SOC. Calculate the profit-maximizing quantity. (Justify your answer carefully.) Calculate the firm’s maximized profit.

(b) Repeat part (a), assuming that the market price is 24.

(c) Draw a picture of the firm’s supply curve. You should show the exact coordinates of the points where Q=0, Q=10, and Q=20.

(d) In what circumstances should the firm choose Q=5?

(e) If this were a free entry industry, then what would be the long run equilibrium price?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91572615

Have any Question?Write your Review or question?

Related Questions in Business Economics

How do bribery and corruption influence the economy

How do bribery and corruption influence the economy negatively? Answer and explain three major impacts.

The time needed to complete the final exam for math 106 is

The time needed to complete the final exam for Math 106 is normally distributed with a mean of 75 minutes and a standard deviation of 10 minutes. For each question below, draw, label, and shade the area that you are inte ...

1 what source of variation is found in an anova summary

1. What source of variation is found in an ANOVA summary table for a within-subjects design that is not in in an ANOVA summary table for a between-subjects design. 2. What happens to this source of variation in a between ...

If there is an increase in demand for a service and a

If there is an increase in demand for a service, and a decrease in supply of the service, what impact will that have on the equilibrium price and quantity for the service?

Suppose that the demand curve for tickets to see a football

Suppose that the demand curve for tickets to see a football team play a game is given by Q = 80,000 - 40P and marginal cost is zero. The team's stadium can host 75,000 fans. i) How many tickets would the team sell if it ...

Electric car technology has been improving and the us shale

Electric car technology has been improving and the U.S. shale gas oil supply has been increasing. What will be the impact on the crude oil market price? What will be the impact on the gas-burning auto market price? Expla ...

Why is the us banking system known as a dual banking system

Why is the US banking system known as a dual banking system? What historical developments led to that structure? How is the structure justified today?

A company that manufactures gasoline station pumps must

A company that manufactures gasoline station pumps must ensure that it pumps at least 1 gallon of gasoline 84% of the time. If the population of pump amounts for a particular pump is normally distributed with mean μ and ...

Has globalization increased or decreased social and

Has globalization increased or decreased social and economic disparities around the globe? Can you please provide details.

1 which of the following statements is not true about

1. Which of the following statements is not true about an excise tax? A- A unit tax is an excise tax. B- An excise tax is levied on the purchases of particular good or service. C-An excise tax is based on an individual's ...

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