Derive average and marginal cost for all integer outputs, Ask an Expert

Economics

Consider the following cost relationships for a single-product firm:

C(q)= 50 + 0.5q for q<7
C(q)= 7q for q> 7

a. Derive average and marginal cost for all integer outputs less than or equal to 7.

b. What are average and marginal cost for all outputs above 7?

c. What can you conclude on the basis of the calculations above?

d. Is there a minimum efficient scale of plant implied by these cost relationships? If so, what is it?

e. Let P be industry price and Q be total industry output. If the industry demand curve is P = 84 - 0.5Q use the data from your above calculations to determine what is the maximum number of efficient-sized firms that the industry can sustain.

f. How would your answer to e. change if industry demand were instead P = 14 - 0.5Q? describe.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M972968

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question please write a 5 paragraph essay about thisfixed

Question: Please write a 5 paragraph essay about this! Fixed cost versus variable cost use a key study that illustrate your understanding of the concepts. Most importantly what happens to fixed cost as output increases? ...

Question you are an assistant to a senator who chairs an ad

Question: You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over 15 million on related paperwork and compliance cost ...

Question in 1980 automobile manufacturers in the united

Question: In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States. In a critical essay, elaborate on the costs and benef ...

Question for all of their diversity many less developed

Question: For all of their diversity, many less developed countries are linked by a range of common problems. What are these problems? State only FOUR (4) characteristics of the developing world. Which do you think are t ...

Question in fast food we often see that a single franchisee

Question: In fast food we often see that a single franchisee owns all the outlets in a certain area that may be as large as a city. How does this increase the value that a franchise agreement is likely to create? The res ...

A market with q 16p-2 is supplied by a monopoly with cost

A market with Q = 16*p^-2 is supplied by a monopoly with cost C(Q) = 6 + Q^2/8. Calculate the equilibrium price, output and monopoly profits. What should be the equilibrium if the market were supplied competitively by fi ...

Question the demand for tables is p24-2q and the supply is

Question: The demand for tables is P=24-2Q and the supply is P=Q. If the government were to impose a price floor of $12, What is the deadweight loss created by the price floor? The response must be typed, single spaced, ...

Question consider the following model of trade between home

Question: Consider the following model of trade between Home and Foreign. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Tables an ...

Quesiton if a corporation has a tax credit of 80000 and its

Quesiton: If a corporation has a tax credit of $80,000 and its taxable income is $550,000. How much tax do they have to pay based on the tax table in your equation sheet? The response must be typed, single spaced, must b ...

Question national circuit boards inc made 20100 printed

Question: National Circuit Boards Inc made 20,100 printed circuit boards in December consuming the following resources: Labor: 6,000 hours at $17.00 per hour What is the labor productivity per hour for these circuit boar ...

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 Microeconomics Expert