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3 years ago

Suppose a perfectly competitive firm's total cost of production (TC) is:

Business

2 answers:

Ksivusya [100]3 years ago

8 0

Answer:

P = 3q^2 - 8q + 60 for prices above $56

Explanation:

The firm's short run supply curve is the portion of its marginal cost curve. The firm's marginal cost of production is the change in its total cost of production from producing one additional unit. The firm's short run supply curve lies above its average variable cost curve. If the price in market rises the firm will sell more products. The short run supply curve is upward sloping because quantity supplied increases when the prices are increased.

deff fn [24]3 years ago

7 0

Answer:

The firm's short-run supply curve is P = 3q^2- 8q + 60 for prices above $56

Explanation:

Given Data;

TC(q) = q^3 - 4q^2 + 60q + 15

MC = 3q^2 - 8q + 60

But,

Fixed Cost, FC = TC(0) = 15

Therefore, the variable cost becomes

VC(q) = TC(q) - FC

= q^3 - 4q^2 + 60q

Since average variable cost = VC(q) /q, the equation becomes;

AVC(q) = VC(q)/q

= (q^3 - 4q^2 + 60q)/q

= q^2 - 4q + 60

When the curve is at a minimum point, AVC'(q) = 0

Therefore,

q2 - 4q + 60 = 0

2q - 4 + 0 = 0

2q = 4

q = 4/2

q = 2

Since q = 2,

AVC(2) = 22 - 4*2 + 60 = 4 - 8 + 60 = $56

Therefore, the short-run supply curve of the firm is P = 3q2- 8q + 60 for prices above $56

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3 years ago

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3 years ago

MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.

ruslelena [56]

Answer:

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Explanation:

The budgets are calculated in the following ways.

We multiply the required material , direct labor hour or variable overhead rate with the given number of units and then with the cost per unit to get the total costs.

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Total Pounds 10400 12600 12200

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Total hours 3640 4410

Rate per hour * $15 *$15

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3 years ago

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Andreas93 [3]

Answer:

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Explanation:

If the ending amount of cash for the year is less than the desired ending balance, then the company will need to borrow to maintain the desired level of cash balance.

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3 years ago

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REY [17]

Answer:

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Explanation:

The expected profit is calculated as follows:

Step 1

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Step 2

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3 years ago

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