Compute the profit maximization level of activity., Ask an Expert

Economics

P = 300 - .001 Q

TC = 9,000,000 + 20 Q + .0004 Q²

a) Find TR, MR and AR.

b) Find the AVC, ATC and MC.

c) Compute the profit maximization level of activity.

d) Compute total revenue, total cot and profit or loss at profit maximization level of activity.

e) Compute elasticity of demand at profit maximization.

f) Compute the breakeven level of activity.

g) Compute profit or loss at breakeven.

h) Compute profit or loss if the firm decided to close the plant in the short run.

i) Graph TR/TC and show/explain profit/loss and break even values.

j) Graph demand, marginal revenue, average total cost, marginal cost and shade profit or loss.

k) With the help of a graph, explain the concept of monopoly welfare loss. Make sure to explain consumer surplus, producer surplus and the distribution (gain/loss) of surplus between consumers and producers.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9306065

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