Exercise

1.Given TC = 100+ 60Q -12Q² + Q³, find:

a.The equations of the TVC, AVC, and MC functions.

b.The level of output at which AVC and MC are minimum.

2.The profit function of Mabuto dancers is given as follows: total profit () = 15Q - 200 - 0.02Q². Calculate the optimum quantity for the company.

3.A perfectly competitive firm provides the following information about its operations:Total cost = 200 + 10Q + 0.02Q2 and price = K25. Using the marginal profit rule, find the optimal quantity.

4.A company provides the following information about its operations: Price (P) = 200 - 0.01Q; TC = 10, 000 + 100Q + 0.02Q2; TR = 200Q - 0.01Q2. Find the optimal quantity and optimal price.

5.Suppose the price function (P) = 7 - 0.01Q.Find the total revenue and marginal revenue.

6.Suppose FC = 100, AVC = 20 + 5X, and Q = 4X.Find the total cost and marginal cost.