Managerial

Question 1: 10. Suppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be AVC = 10 - 0.03Q + 0.00005Q2 sitas vilor facilibasic Isrf10 .Total fixed cost is $600. Lau igarlabasige s stam?' . umnT gvods /17/3 616 1209 a. What is the corresponding marginal cost function? .i toi mad basicge mov feb. At what output is AVC at its minimum?' 986 for12 - OMe ,CO. = Q 1A . C. What is the minimum value for AVC? Jinu 199 6012 is losassini afiq sIf the forecasted price of the firm's output is $10 per unit: ha be dabsong mov ni ermulon d.How much output will the firm produce in the short run? 4 -OfApart, Thistugmove. How much profit (loss) will the firm earn? 101 Toere = AM To got filebounce moy ni arunulo If the forecasted price is $7 per unit: To)1 (@XAM10X11) rugism inof. How much output will the firm produce in the short run? 8. How much profit (loss) will the firm earn?/4. mit vab yasin word Jaco Islol gets If the forecasted price is $5 per unit: otabsfill Snigtom ito q h. How much output will the firm produce in the short run? showys) arelebs/1 10 198 0mi. How much profit (loss) will the firm earn? tar wolf Question 2: 15. The manager of a monopoly firm obtained the following estimate of the demand func- tion for its output: Q = 2,600 - 100P + 0.2M - 500PR Bingiq owl From an econometric forecasting firm, the manager obtained forecasts for the 2014 values of M and PR as, respectively, $20,000 and $2. For 2014 what is: a. The forecasted demand function? DE0.0 + + = b. The inverse demand function?_ c. The marginal revenue function? 16. For the firm in problem 15, the manager estimated the average variable cost function ac AVC = 20 - 0.070 + 0.000102 where AVC was measured in dollars per unit and Q is the number of units sold. a. What is the estimated marginal cost function? b. What is the optimal level of production in 2014? 1 Isnigam C, What is the optimal price in 2014? d. Check to make sure that the firm should actually produce in the short run rather than shut down. In addition, the manager expects fixed costs in 2014 to be $22,500. e. What is the firm's expected profit or loss in 2014? - Lanina LL - 1