If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q + 2Q3 where Q1 and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P2 respectively, find the optimal levels of output that the firm should produce to maximize its profit Lütfen birini seçin: O a. Qi = 1/6P, and Q; = 1/6P, %3D O b. Q; = 1/4P and Q; = 1/6P2 O c. Q; = 1/6P and Q; = 1/4P2 | O d. Q; = 1/4Pi and Q; = 1/4P2

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$

A firm’s production function is Q = 10 + 30L - .5L2+ 30K – K2, and its competitive demand function is PQ= MRQ = d = $40. The prices of L and K are PL = $6 and PK= $12. Suppose K is fixed at K =10.  Use Excel Solver to find the profit-maximizing quantity (Q).   A. 660.   B. 684.   C. 764.   D. 788.   E. 864.

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_________.