1. See the attached file.
Summary of calculations:
TFC = AFC when Q = 1, so TFC = 180
AFC = TFC/Q
AVC = TVC/Q
ATC = ...

Solution Summary

This solution gives a detailed explanation of all the calculations required to complete a Costs table for a firm and graph it in Microsoft Excel. The solution also explains how to determine the firm's profit-maximizing output.

Profit Maximization
--------------------------------------------------------------------------------
A monopolistic firm operates in two seperate markets. No trade is possible between market A andmarket B. The firm has calculated the demand functions for each market as follows:
Market A p = 15 -Q
Market B p = 11 -Q

You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is C(Q)=Q+2Q^2.Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent chanc

The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded.
Table 1
Output Average Fixed cost Average Variable Cost ATC Marginal Cost Price Total Revenue Marginal Revenue
0

A manufacturer of small chain saws has determined:
R(x)=xp(x)=x(200-x/30)=200x-x^2/30
C(x)=7200+60x
Where x is the number of saws that can be sold at price $p per saw and C(x) is the total cost (in dollars) of producing x saws.
a. Find the marginal cost
b. Find the marginal revenue
c. What is the minimum number of saws s

1. A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by:
C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P.
a.What is the profit maximizing output for this company?
b.Wh

You are the manager of a monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2 (That's Q squared).
a. What level of output should you choose to maximize profits?
b. What price should you charge?
c. What will happen in your market in the long run? Explain.

Introduction: Based on the pricing and output decisions in the short run, firms in Perfect competition, Monopoly, and Monopolistic competition show an ability to earn abnormal profits. However, it is observed that in the long run, these firms are able to earn only normal profits.
Task: Do you agree with the statement above? A

A Grocery store makes pricing decisions based on cost of the products. All other costs are fixed at $800,000 per year. The average cost of inventory at the store is $1,000,000. The inventory turns over eight times a year.
a. If prices are set at 12% above costs, what is the profit of the grocery store for the year?
b. What

Market Equilibrium andProfit Maximization under Perfect Competition
The supply and demand equations for a hypothetical perfectly competitive market are given by
QS = -100 + 3P and QD = 500 - 2P.
a) Find the market equilibrium price algebraically.
b) In Excel, use the above equilibrium price and the cost data fro