Friday
July 25, 2014

Homework Help: Economics

Posted by Philip on Sunday, October 14, 2012 at 2:36pm.

A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q.
a. Find the firmís profit-maximizing price and quantity. What is its profit?
b. The firmís production manager claims that the firmís average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firmís profit-maximizing level of output. Explain whether these claims are correct.
c. Could the firm increase its profit by using a second plant (with costs identical to the first) to produce the output in part (a)? Explain.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

ECONOMICS - A firm uses a single plant with costs C= 160 +16Q +.1Q2 and faces ...
managerial economics - A firm uses a single plant with costs C= 160 +16Q +.1Q2 ...
Economics - A monopoly produces widgets at a marginal cost of $8 per unit and ...
Microecnomics - A firm is a monopolist in the production of a fuel sensor system...
Economics - Suppose a firm faces a downward sloping demand curve givven by the ...
Economics - Yeah, so I'm in urgent need of help with this homework. 1. Assume ...
Economics - The firm currently uses 70,000 workers to produce 300,000 units of ...
economics - Consider the problem of a competitive firm which has fixed costs of...
CALCULUS ECONOMICS - Consider the problem of a competitive firm which has fixed ...
CALCULUS ECONOMICS - Consider the problem of a competitive firm which has fixed ...

Search
Members