Question
CAN SIR HELP ME COMPLETE IN 45 MINS a. Given the total cost function: TC = 100 + 40Q - 15Q 2 + 5Q 3
CAN SIR HELP ME COMPLETE IN 45 MINS
a. Given the total cost function: TC = 100 + 40Q - 15Q2 + 5Q3, calculate the
i.Total fixed cost function (TFC) [1 Mark]
ii. Total variable cost function (TVC) [1 Mark]
iii.Average cost function (AC) [2 Marks]
iv.Marginal cost function (MC)[2 Marks]
b. A perfectly competitive firm has total revenue and total cost curves given by:
TR = 300Q
TC = 6,000 + 3Q + 0.4 Q2
iFind the profit-maximizing output for this firm.[4 Marks]
ii. Calculate the firms profit.[2 Marks]
iii. Is the firm running in the long-run? Justify[3 Marks]
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