Question
Proxy Computing Co. has the following costs: TC = 256 + 128Q + 8Q2 (i) Identify the fixed, variable and marginal costs. Does the cost
Proxy Computing Co. has the following costs: TC = 256 + 128Q + 8Q2
(i) Identify the fixed, variable and marginal costs. Does the cost structure represent a short-run or long-run cost structure? Why?
(ii) The market demand curve is: Q = 1000 – 2P and the supply curve is: Q = 3P. Proxy Computing is a small firm operating in this perfectly competitive market. Compute Proxy Computing’s profit-maximising quantity.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
i To identify the fixed variable and marginal costs lets first differentiate the total cost function ...
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
