1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LekaFEV [45]
3 years ago
5

A firm in a competitive industry has a total cost function of TC = 0.2 Q2 – 5Q + 30, whosecorresponding marginal cost curve is M

C=0.4Q – 5. If the firm faces a price of 6,
a)what quantity should it sell? (10 points)

b)What profit does the firm make at this price? (10 points)

c)Should the firm shut down? (10 points)
Business
1 answer:
Mama L [17]3 years ago
7 0

Answer:

Consider the following calculations

Explanation:

TC=0.2Q2 - 5Q + 30,

MC=0.4Q - 5.

Equilibrium condition

MC=P

0.4Q - 5 = 6

0.4Q = 11

Q = 11/.4

=27.5

Profit = TR - TC

        =27.5*6 - .2(27.5)2 -5(27.5)+30

       =165 -756.25 -137.5 +30

       = - 698.5

Firm is incurring loss

Firm will continue to produce as long as it is able to recover AVC

AVC =0.2Q -5

=0.2(27.5) -5

=5.5 -5

=0.5

Hence firm will continue to produce

You might be interested in
Henrique Correa's bakery prepares all its cakes between 4 A.M. and 6 A.M.so they will be fresh when customers arrive. Day-old ca
masha68 [24]

Answer:

The optimal stocking level for the bakery is cakes 27.

Explanation:

Cost c = $ 7

Selling price p = $ 10

salvage value s = $ 5

Mean = 25

Standard deviation \sigma = 8

Cu = underage cost

    = p-c

    = $10 - $7

    = $3

Co = overage cost

     = c-s

     = $7 - $5

     = $2

P\leq C_{u}/(C_{u}+C_{o})

P\leq3/(3+2)

= 0.6

By using normsinv() function in excel we to find the correct critical value

The Z value for the probability 0.6 is 0.2533

The optimal stocking level is

=\mu +z\sigma

= 25 + 0.2533 *8

= 27.02

The optimal stocking level of bakery is 27.02

Therefore, The optimal stocking level for the bakery is cakes 27.

8 0
3 years ago
Scenario D: Theo, Diana, and Teddy, who work for different organizations, are comparing the diversity makeup of their respective
Marrrta [24]

Answer:

"B"

Explanation:

Monolithic organization is an organization that forcefully incorporate all employees into a particular culture being practiced. It can be a very large organization but lack flexibility and its rate of reaction to changes can be very slow.

Its operational system are complicated as resources can be scarce. It believes it can influence employees' motivation, customers, the market and any other complex system.

This description fits into the situation at Teddy's place of work

3 0
3 years ago
Which of the following is a disadvantage of equity capital?
Blababa [14]
Norge answer ishhhhhnxmjdnshei
4 0
3 years ago
It is important to use real rather than nominal gdp figures when making comparisons of output across time periods because the re
melamori03 [73]

Answer: TRUE

Explanation: Gross Domestic Product ( GDP) can be described as the market value of all goods and services produced in a country within a particular time period which is usually a year.

The equation for finding GDP is given as -

GDP = Consumption + Investment + Government Spending + ( Exports - Imports)

Nominal GDP can be described as the market value of all goods and services produced in a country within a particular time period using current market prices.

Real GDP can be described as the market value of all goods and services produced in a country within a particular time period using base year prices. Using base year prices to calculate real GDP adjusts for inflation.

4 0
3 years ago
A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ s
Ksju [112]

Answer:

The answer is D, Execution System.

Explanation:

Supply chain Execution system is a system that ensures the delivery of materials or orders to the concerned departments. So in this example, when a company is having difficulty with timely delivery of parts to its manufacturing plants, the company should implement the Supply Chain Execution System in order to ensure the timely delivery of the material to the manufacturing plant of the company.

8 0
2 years ago
Other questions:
  • Peanuts are an input in the production of peanut butter. If a decrease in the supply of peanuts increases the price of peanuts,
    11·2 answers
  • To find out how common domestic violence is in the general population, a questionnaire was sent out to a random sample of anonym
    11·1 answer
  • Because of their relatively small national economies, which of the following is most likely considered to be the most important
    12·1 answer
  • As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioni
    7·1 answer
  • ___________ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.
    14·2 answers
  • Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered
    6·1 answer
  • If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin rati
    7·1 answer
  • Entertainer's Aid plans five annual colossal concerts, each in a different nation's capital. The concerts will raise funds for a
    6·1 answer
  • shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeesssssssssssssssssssssssssssssssssssssssssssshhhhhh
    8·2 answers
  • 1. Please select each piece of information needed to calculate a real exchange rate.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!