microeconomics

/ Uncategorized / By

DescriptionAssignment 2B
Production Practice Questions
1) Consider the following total cost function for Firm A: TC(Q)=3Q2+4Q+1000.
a) Does this cost function satisfy the law of diminishing returns?
b) Calculate TVC, AVC, TFC, AFC, AC.
c) Suppose that the firm’s demand curve is given by p=40. How much should this firm produce
to maximize its profit?
d) What is the firm’s short-run supply curve?
2) Consider the following total cost function for Firm A: TC(Q)=4Q3-12Q2+2Q+1,000,000.
a) Does this cost function satisfy the law of diminishing returns?
b) Calculate TVC, AVC, TFC, AFC, AC.
c) Suppose that the firm’s demand curve is given by p=2. How much should this firm produce
to maximize its profit?
d) What is the firm’s Short-run supply curve?
e) What is the firm’s shut down point?
3) What happens to a competitive firm whose cost function exhibits decreasing marginal cost
everywhere? Construct a concrete cost function of this type and carry out the search for the
profit maximizing output.
4) Show that at the profit-maximizing quantity for a perfectly competitive firm, MC should have a
positive slope.

Purchase answer to see full
attachment

DescriptionAssignment 2B Production Practice Questions 1) Consider the following total cost function for Firm A: TC(Q)=3Q2+4Q+1000. a) Does this cost function satisfy the law of diminishing returns? b) Calculate TVC, AVC, TFC, AFC, AC. c) Suppose that the firm’s demand curve is given by p=40. How much should this firm produce to maximize its profit? d) What is the firm’s short-run supply curve? 2) Consider the following total cost function for Firm A: TC(Q)=4Q3-12Q2+2Q+1,000,000. a) Does this cost function satisfy the law of diminishing returns? b) Calculate TVC, AVC, TFC, AFC, AC. c) Suppose that the firm’s demand curve is given by p=2. How much should this firm produce to maximize its profit? d) What is the firm’s Short-run supply curve? e) What is the firm’s shut down point? 3) What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere? Construct a concrete cost function of this type and carry out the search for the profit maximizing output. 4) Show that at the profit-maximizing quantity for a perfectly competitive firm, MC should have a positive slope. Purchase answer to see full attachment

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.