0.7 A firm has the following information on production and costs from past data: Output (Y) Total Cost (TC) If the total cost TC=aY³ + bY²+kY+f, and the demand for the product of the firm is Y = 320-(1/2). P answer the following: ● 0 9 6 2775 18 8199 12 5361 function is known to be Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of output and price. What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
0.7 A firm has the following information on production and costs from past data: Output (Y) Total Cost (TC) If the total cost TC=aY³ + bY²+kY+f, and the demand for the product of the firm is Y = 320-(1/2). P answer the following: ● 0 9 6 2775 18 8199 12 5361 function is known to be Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of output and price. What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.9P
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Transcribed Image Text:0.7 A firm has the following information on production and
costs from past data:
Output
(Y)
Total Cost (TC)
If the total cost
TC=aY³ + bY²+kY+f, and the demand for the product
of the firm is Y = 320 - (1/2). P answer the following:
●
0
9
6
2775
18
8199
12
5361
function is known to be
Determine the coefficients of the cubic cost function.
Derive all cost and revenue curves and the profit function.
Show that the MC cuts the AVC when AVC is at its
minimum point. Plot the relevant graph indicating all points.
Calculate the break even and profit maximizing levels of
output and price.
What is the relationship between price, marginal revenue and
own price elasticity of demand at the profit maximization
point.
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