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Aleonysh [2.5K]
3 years ago
10

Suppose that each firm in a competitive industry has the following costs: Total Cost: TC=50+1/2q^2 Marginal Cost: MC=q where q i

s an individual firm's quantity produced. The market demand curve for this product is: Demand QD=160−4P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ . What is each firm's variable cost?
Business
1 answer:
LiRa [457]3 years ago
5 0

Answer:

Fixed cost = constant term i.e 50

Variable cost = \frac{q^2}{2}

Explanation:

Data provided in the question:

Total Cost: TC = 50+\frac{q^2}{2}

here q is an individual firm's quantity produced

Demand QD = 160 − 4P

here P is the price and Q is the total quantity of the good

Now,

The Total cost = Fixed cost + Variable cost

here, Fixed is constant, while the variable cost varies with number of quantities being produced

Thus,

from the total cost function, we have

Fixed cost = constant term i.e 50

Variable cost = \frac{q^2}{2}

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Answer:

Relative Frequency = Observed value for each cell / Total frequency * 100

Cause                       Relative Frequency

Pilot Error                           619

Other human error             85

Weather                              574

Mechanical problems        566

Sabotage                            524

Total                                   2368

The total frequency is 2368

The calculation of the relative frequency distribution is

Cause                          Relative Frequency           Result

Pilot Error                         619/2368 * 100              26.14%

Other human error           85/2368 * 100               3.59%

Weather                            574/2368 * 100             24.24%

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Sabotage                          524/2368 * 100             <u>22.13%</u>

Total                                                                          100%

Conclusion: The most serious threat to aviation safety is the Pilot error as it has the highest frequency. Pilot need to be more equipped with understanding and knowledge of how to deal with unexpected event i.e. turbulence, engine failure among others..

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