A firm has two plants and wishes to profit maximize. Find the quantity plant one would produce. P = 120 - 9.30 TC, = 50 + q, + 491² TC2 = 50 + 2.392 + 7.4q2² plant 1 produces q1= no need to give the answer for plant 2. just calculate for plant 1

Q3

Problem 2.5 The cost function for Acme Laundry is TC(q) = 10 + 10q + q^2  so its marginal cost function is MC(q) = 10 + 2q where q is tons of laundry cleaned.  Derive the firm's average cost and average variable cost curves.  What q should the firm choose so as to maximize its profit if the market price is p?  How much does it produce if the competitive market price is p = 50?

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2   What is the firm Fixed Cost? Why? Also, use a graph to support your answer

What would the answer be for 3 and 4?

The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for sun lamps.

On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results.   Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________.   Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.

The graph below shows a particular firms marginal revenue (mr) marginal cost (mc) and average total cost (atc) curves, where the market is competitive. Suppose that a new management team is brought in and that this team is initially less concerned about maximizing profits than it is simply about making a profit. What range of production quantities will allow the firm to operate while earning a profit? Give you're answer by dragging the qmin to Qmax lines into their correct positions. The output will need to lie somewhere between those limits.

Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per oven) 100 90 80 70 40 30 20 10 0 0 5 0 MC ATC AVC 10 15 20 25 30 35 QUANTITY (Thousands of ovens) 40 45 50 (?)

The production manager of a clothing manufacturer estimates that the daily total cost of producing men’s suits is given by the equation: TC=2000+396Q-0.8Q^2. The market price of suits is $300. Which of the following statements is correct? A. Short term, the firm should close because its price is less than its average variable cost. B. Short term, the firm should stay open since price exceeds the average variable cost. C. Short term, the firm should close because it is not earning an economic profit. D. Long term, the firm should stay open since it is earning an economic profit