Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi there, please answer these questions with full working out. Thanks Q1) If the pre-tax cost function for John's Shoe Repair is C(q) = 100

Hi there, please answer these questions with full working out. Thanks

Q1) If the pre-tax cost function for John's Shoe Repair is C(q) = 100 + 10q - q2 + 1/3q3 , and it faces a specific tax of t = 10, what condition determines the maximising output if the market price is p? Can you solve for a single, maximising q in terms of p?

Q2)Should a firm shut down (and why) if its revenue is R = $1,000 per week,

A) its variable cost is VC = $500, and its sunk fixed cost is F = $600?

B) its variable cost is VC = $1,001, and its sunk fixed cost F = $500?

Q3)Each of the 10 firms in a competitive market has a cost function of C = 25 + q2 , so its marginal cost is MC = 2q . The market demand function is

Q = 120 - p . Determine the equilibrium price, quantity per firm, and market quantity.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management And Insurance

Authors: Scott E Harrington, Greg Niehaus

2nd Edition

0072339705, 9780072339703

More Books

Students also viewed these Economics questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago