Suppose the total cost equation for a competitive firm is, Ask an Expert

Economics

Suppose the total cost equation for a competitive firm is given by:

TC=1,000 + 10Q - 2Q2 + 0.5Q3

(A) At what output is the average variable cost (AVC) at a minimum?

(B) If the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9744558

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question when a neighborhood is cleaned up and kept neat

Question: When a neighborhood is cleaned up and kept neat, there are a number of positive spillovers: higher property values, less crime, happier residents. What types of government policies can encourage neighborhoods t ...

Question a monopoly has costs described by tcq60008q demand

Question: A monopoly has costs described by TC(Q)=6000+8Q. Demand is described by P=60-0.1Q. What is the monopolist's profit-maximizing price (P)? The response must be typed, single spaced, must be in times new roman fon ...

Question perform hypothesis tests for the followingyou love

Question: Perform hypothesis tests for the following: You love donuts. You love them so that you decide to perform a study on the average diameter of donuts. You found that the average round donut size in the entire city ...

Question define and discuss what is meant by risk aversion

Question: Define and discuss what is meant by risk aversion in financial markets. The definition and discussion can include a comparison of two assets, but they must have different returns and different risks. Discuss ho ...

Question assume that the value of the currency of country j

Question: Assume that the value of the currency of country J rises by 10% one year. Its price elasticity of imports is -0.6 and its price elasticity of exports is -0.7. Imports of raw materials and parts account for 30% ...

Question if the fed were to pursue an easy-money policy

Question: If the Fed were to pursue an easy-money policy (lower interest rates) why would we expect this to stimulate investment demand? Are there limits to the power of an "easy money" policy; are we in a period now whe ...

Question traders in asset markets suddenly learn that the

Question: Traders in asset markets suddenly learn that the interest rate on dollars will decline in the future. Use a diagram to show the new equilibrium, assuming current interest rates on dollar and euro deposits do no ...

Question after years of smoldering unrest in southern

Question: After years of smoldering unrest in southern Mexico, the rebels finally mount a full-scale attack on urban areas. Order is eventually restored, but in the meantime capital has fled the country, resulting in a 5 ...

Question suppose that twenty-five years ago a country had

Question: Suppose that twenty-five years ago a country had nominal GDP of $1,800, a GDP deflator of 150, and a population of 100. Today it has nominal GDP of $2,800, a GDP deflator of 270, and population of 180. What hap ...

Question what information could be lost if a firm were to

Question: What information could be lost if a firm were to buy a supplier of its intermediate goods and incorporate that firm into its existing operating structure? The response must be typed, single spaced, must be in t ...

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