Suppose that you estimate the following cost function for your company, which is a monopolistically competitive firm: <\/p>
<\/p>
TC <\/em>= 80Q <\/em>- 4Q<\/em>2<\/sup> + 0.25Q<\/em>3<\/sup> ,<\/p> <\/p> and the following demand curve for your product:<\/p> <\/p> P <\/em>= 80 - 2Q<\/em><\/p> <\/p> a. Compute and plot the average cost and marginal cost. <\/p> b. Over what range of output does economies of scale exist? Diseconomies of scale? <\/p> c. How many units of output will you produce and what price will you charge for each unit? (Hint: A monopolistically competitive firm produces where MR=MC. First find the level of output by setting MR=MC, then substitute the value of Q into the price equation above to find the value of P.) d. Is the company making a profit or loss at the suggested output level? How much?<\/p>",
"transcribed_text": "",
"related_book": {
"title": "Managerial Economics",
"isbn": "0133020266, 978-0133020267",
"edition": "7th edition",
"authors": "Paul Keat, Philip K Young, Steve Erfle",
"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/935.jpg",
"uri": "\/textbooks\/managerial-economics-7th-edition-935",
"see_more_uri": "\/textbooks\/business-quality-management-3407"
},
"free_related_book": {
"isbn": "045149492X",
"uri": "\/textbooks\/how-to-talk-to-your-cat-about-gun-safety-and-abstinence-drugs-satanism-and-other-dangers-that-threaten-their-nine-lives-1st-edition-978-0451494924-302078",
"name": "How To Talk To Your Cat About Gun Safety And Abstinence Drugs Satanism And Other Dangers That Threaten Their Nine Lives",
"edition": "1st Edition"
},
"question_posted": "2024-06-05 22:13:33",
"see_more_questions_link": "\/study-help\/questions\/business-organizational-behavior-2023-February-20",
"step_by_step_answer": "The Answer is in the image, click to view ...",
"students_also_viewed": [
{
"url": "\/you-have-been-assigned-an-intern-to-help-you-forecast-your",
"description": "You have been assigned an intern to help you forecast your firms costs at different volumes. He thinks he will get cost and volume data from the two most recent months, plug them in to the high-low...",
"stars": 3
},
{
"url": "\/study-help\/college-algebra-graphs-and-models\/solve-each-polynomial-equation-in-exercises-110-by-factoring-and",
"description": "Solve each polynomial equation in Exercises 110 by factoring and then using the zero-product principle. 5x4 - 20x = 0",
"stars": 3
},
{
"url": "\/study-help\/coaching-supervision-a-practical-guide-for-supervisees\/understand-under-what-circumstances-social-support-may-have-negative-effects-1980215",
"description": "understand under what circumstances social support may have negative effects; and",
"stars": 3
},
{
"url": "\/mckee-corporation-has-annual-fixed-costs-of-12-million-its",
"description": "McKee Corporation has annual fixed costs of $12 million. Its variable cost ratio is .60. a. Determine the companys break-even dollar sales volume. b. Determine the dollar sales volume required to...",
"stars": 3
},
{
"url": "\/study-help\/questions\/yneticilerin-btelere-kar-olumsuz-tutumlarn-azaltmann-bir-yolu-gereidir-9866197",
"description": "Yneticilerin btelere kar olumsuz tutumlarn azaltmann bir yolu ________ gereidir. A. Uzun vade planlamas B. katlmc bteleme C. eksi tabanl etkinlikler bteleme D. sfr-eksi tabanl bteleme",
"stars": 3
},
{
"url": "\/study-help\/questions\/show-the-end-behavior-using-directed-arrows-gx5-ol-2017557",
"description": "Show the end behavior using directed arrows. g(x)=5- OL 7 2 HC - 32 ON OM",
"stars": 3
},
{
"url": "\/study-help\/questions\/pick-a-retailer-you-regularly-shop-from-tom-thumb-explain-1005371",
"description": "Pick a retailer you regularly shop from (Tom Thumb). Explain why this company is indeed a retailer. Comment on the variety (broad\/limited) and assortment (deep\/shallow) at that retailer. List all the...",
"stars": 3
},
{
"url": "\/study-help\/questions\/do-performance-management-systems-measure-significant-and-meaningful-employee-behaviors-1004856",
"description": "Do performance management systems measure significant and meaningful employee behaviors? Why? Why not? How can you tell?",
"stars": 3
},
{
"url": "\/study-help\/questions\/show-detail-calculations-fin-3020-case-studies-fall-2021-1001058",
"description": "show detail calculations. FIN 3020 Case Studies - FALL 2021 Solve the following three questions: Show detail calculations Q#1: The waiting time for patients at a walk-in health clinic follows a...",
"stars": 3
},
{
"url": "\/study-help\/questions\/case-for-ethical-analysis-you-are-on-a-team-that-1004956",
"description": "Case for ethical analysis: You are on a team that has been providing care, including annual wellness exams for Ms. Angel, a 25-year-old female, for the past two years. When she was establishing care...",
"stars": 3
},
{
"url": "\/study-help\/questions\/1-birchwood-lanes-school-will-maintain-personal-records-for-all-999849",
"description": "1)) Birchwood Lanes School will maintain personal records for all students and teachers, as well as course curricula. A new database management system can organize the data of all entities. The...",
"stars": 3
},
{
"url": "\/study-help\/questions\/you-are-reviewing-loan-offers-for-a-30year-fixed-rate-7070913",
"description": "You are reviewing loan offers for a 30-year fixed rate mortgage loan in the amount of $400,000. Option 1: mortgage broker has offered an interest rate of 3.5% with a 1% lender origination fee...",
"stars": 3
},
{
"url": "\/study-help\/essentials-of-management\/select-several-interest-groups-to-follow-on-your-linkedin-account-1551732",
"description": "Select several interest groups to follow on your LinkedIn account.",
"stars": 3
},
{
"url": "\/study-help\/essentials-of-management\/search-the-internet-for-the-term-matrix-organization-to-find-1551731",
"description": "Search the Internet for the term matrix organization to find examples of the grid. Also, note the difficulties those companies may have encountered.",
"stars": 3
},
{
"url": "\/study-help\/essentials-of-management\/take-as-examples-a-number-of-positions-in-any-kind-1551728",
"description": "Take as examples a number of positions in any kind of enterprise (business, church, government, etc.). Classify each as line or staff.",
"stars": 3
}
],
"next_back_navigation": {
"previous": "\/study-help\/questions\/pe-ratio-model-and-future-price-walmart-wmt-recently-earned-2321426",
"next": "\/study-help\/questions\/suppose-a-man-invested-200-at-the-end-of-2321428"
},
"breadcrumbs": [
{
"name": "Study help",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers"
},
{
"name": "Business",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business"
},
{
"name": "Finance",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance"
},
{
"name": "Suppose that you estimate the following cost function for your company, which",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/suppose-that-you-estimate-the-following-cost-function-for-your-2321427"
}
],
"skill_details": {
"skill_id": "13",
"skill_name": "Finance",
"parent_id": "1"
}
}}