Suppose that Bob's Donuts has a total cost function given by TC = Q3 - 6Q2 +

Question:

Suppose that Bob's Donuts has a total cost function given by TC = Q3 - 6Q2 + 14Q + 5. Find the quantity that minimizes average variable costs for Bob's Donuts. Demonstrate that average variable cost is equal to marginal cost at this quantity.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

See More Books

Question Posted: Jan 13, 2016 02:38 AM

See More Questions

Candy's Tortilla Company has a total cost function given by TC = Q + 4Q + 9. a. What are Candy's average total cost, average variable cost, and marginal cost? b. Find the quantity that minimizes ATC....
Suppose that a competitive firm has a total cost function C(q) = 450 + 15q + 2q2 and a marginal cost function MC(q) = 15 + 4q. If the market price is P = $115 per unit, find the level of output...
A firm produces a product in a competitive industry and has a total cost function C = 50 + 4q + 2q2 and a marginal cost function MC = 4 + 4q. At the given market price of $20, the firm is producing 5...
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline would shift the supply curve Multiple Choice O down by $1.00. down by more than $1.00. up by $1.00. up by less than...
Wagner Company operates a small chain of department stores. The company owner wants to open two additional stores next year, but the company does not have sufficient cash to nance this expansion...
How is the value of the linear correlation coefficient r affected in each of the following cases? a. Each x value is switched with the corresponding y value. b. Each x value is multiplied by the same...
experimenter wants to compare the metabolic rates of white mice subjected to different drugs. The weights of the mice may affect their metabolic rates; thus, the experimenter wishes to obtain mice...
On Friday nights, patients arrive at the emergency room at Mercy Hospital at an average rate of seven per hour, which follows a Poisson distribution. Assume that an emergency-room physician can treat...
Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human General...
Presented below are the financial statements of Stillwater Company. Stillwater Company Comparative Balance Sheets December 31. 2020 Assets: Cash Accounts receivable Inventory Prepaid Rent Equipment...
A firm has a production function given by Q = 10K0.25L0.25. Suppose that each unit of capital costs R and each unit of labor costs W. a. Derive the long-run demands for capital and labor. b. Derive...
Nancy sells beeswax in a perfectly competitive market for $50 per pound. Nancy's fixed costs are $15, and Nancy is capable of producing up to 6 pounds of beeswax each year. Use that information to...
As an investor, you are considering an investment in the bonds of the Front Range Electric Company. The bonds pay interest quarterly, will mature in 12 years, and have a coupon rate of 3.25% on a...
Idenfity whether the following book - tax adjustments are permanent or temporary differences. ( a ) Federal Income Tax Expense ( b ) Depreciation Expense ( c ) Accrued Compensation ( d ) Dividends...
2 . ) Pozycki, LLC has reported losses of $ 1 0 0 , 0 0 0 per year since its founding in 2 0 1 6 . For 2 0 2 3 , Pozycki anticipates a profit of about $ 1 0 0 , 0 0 0 . There are 3 equal members of...
Elena is a single taxpayer for tax year 2023. On April 1st, 2022, Elena's husband Nathan died. On July 13, 2023, Elena sold the residence that Elena and Nathan had each owed and used as their...
Rodriguez Corporation issues 12,000 shares of its common stock for $56,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The...
Problem 3: A large rectangular plate is loaded in such a way as to generate the unperturbed (i.e. far-field) stress field xx = Cy; yy = -C x; Oxy = 0 The plate contains a small traction-free circular...
Millions of individuals, including millions of minors, play Epic Games Fortnite. One unidentified minor, known in this case as Johnny Doe, filed a federal lawsuit claiming that Epic collects millions...
Write a program that initializes an array. It inputs a value from the user and searches the number in the array.
Which is an indicator of profitability? (a) Current ratio. (b) Earnings per share. (c) Debt to total assets ratio. (d) Free cash flow.
1. Four social inventions that support markets are (1) ______, which specify the terms of exchange; (2) ______, which reduce the risk of entrepreneurs; (3) ______, which increases the profitability...
1. Four social inventions that support markets are (1) ______, which specify the terms of exchange; (2) ______, which reduce the risk of entrepreneurs; (3) ______, which increases the profitability...
1. Four social inventions that support markets are (1) ______, which specify the terms of exchange; (2) ______, which reduce the risk of entrepreneurs; (3) ______, which increases the profitability...
Question 7 of 7 0/14 W PIERDERY Current Attempt in Progress Your answer is incorrect Buffalo Corporation adopted the dollar value LIFO retail inventory method on January 1, 2019. At that time the...
Cost of debt with fees . Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.9% with semiannual payments, and will use an investment...
Assume that an investment of $100,000 is expected to grow during the next year by 8% with SD 20%, and that the return is normally distributed. Whats the 5% VaR for the investment? A. $24,898 B....

Suppose that Bob's Donuts has a total cost function given by TC = Q3 - 6Q2 +

Question:

Step by Step Answer:

Bobs Donuts has fixed cost of 5 and variable cost given by VC Q 3 6 Q 2 14Q Then aver...View the full answer

Microeconomics

Students also viewed these Economics questions