problem solving Flashcards
If the Total Cost function is given as TC = 1000 + 10Q - 0.09Q2 + 0.04Q3 ( One thousand, plus ten Q minus zero point zero nine Q squared plus zero point zero four Q cubed, what is the output rate that minimizes average variable cost?
1.13
None of the above
4.8
11.25
1.13
If TC is given by the function TC = 1000 + 10Q - 0.9Q2 + 0.04Q3, (1000 plus ten Q minus zero point nine Q squared plus zero point zero four Q cubed, how much is the actual average variable cost at the minimum point on the AVC curve?
9.5
5.7
None of the above
4.9
4.9
Given the Total Cost function below
TC = 200 – 2Q + 0.05Q2
At the rate of output that minimizes Average Total Cost, the average fixed cost is …
200
4.28
None of the above
3.16
3.16
If Total Costs are TC = 200 - 2Q + 0.05Q2, ( Two hundred minus two Q plus zero point zero five Q squared) ,then based on the quantity being produced at the lowest point on the Average Total Cost Curve, the total variable costs would be just over $80.00
True
False
False
If TC = 100 + 60Q - 5Q2 + 0.7Q3 ( one hundred plus sixty Q minus five Q squared plus zero point seven Q cubed), minimum average variable costs occurs at what output level?
Q = 7
Q = 6
None of the above
Q = 5
None of the above
If the demand equation for a monopolist is
P = 12Q-1/3
( (Price equals twelve Q to the minus One Third power)
The Marginal Revenue is 4Q1/2 (Four Q to the One half power)
None of these is correct.
The Marginal Revenue is 4Q-1/2 (Four Q to the minus One half power)
The Marginal Revenue is 8Q-1/3 (Eight Q to the minus One third power)
The Marginal Revenue is 8Q-1/3 (Eight Q to the minus One third power)
A monopolist has Total Revenue given by TR = 480Q - 8Q2
and Total Costs were TC = 400 + 8Q2
The firm’s total profits would be
$3200.00
None of these is correct
$5400.00
$2,200
$3200.00
Suppose The Supply and Demand functions of a firm in perfect competition are as follows:
Qs = 20,000 + 30P
Qd = 40,000 – 20P
And the firm’s ATC is as specified below:
ATC = 1000/Q + 200 + 2Q
What is the firm’s Total Revenue at its most efficient level of output?
$4,000
$20,000
$2,000
None of these is correct
$20,000
A profit maximizing monopolist sells in two markets and the marginal cost is $2.00 in each market. If demand is given by P = 21 - 3Q in the first market, the price charged in this market should be $12.00.
True
False
False
The demand equation for a firm in long run Monopolistic competition is given by P = 4.75 – 0.2Q. Average Total Cost for the firm is 5 - 0.3Q + 0.01Q2. The profit maximizing price is $3.00.
True
False
False
Global Motors sells its automobiles in both the United States and in Japan. Due to trade restrictions, a vehicle sold in one country cannot be resold in the other. The demand function for the two countries are:
USA P = 30,000 – 0.4Q
Japan P = 20,000 – 0.20Q
The firm’s total cost function is TC = 10,000,000 + 12,000Q. Global Motors total profits is $264,500,000.
True
False
False
A small firm traps rabbits for their fur and feet. Each rabbit yields one pelt and two feet (only the hind feet are used to make good luck charms). The demand for pelts is given by P = 2.00 - 0.001Q
and the demand for rabbit’s feet is given by P = 1.60- 0.001Q
The marginal cost of trapping and processing each rabbit is 0.60
What is the profit maximizing quantities of pelts and rabbit’s feet?
None of the above
640
700
750
750
Global Motors sells its automobiles in both the United States and in Japan. Due to trade restrictions, a vehicle sold in one country cannot be resold in the other. The demand function for the two countries are:
USA P = 30,000 – 0.4Q
Japan P = 20,000 – 0.20Q
The firm’s total cost function is TC = 10,000,000 + 12,000Q. What is the firm’s total profits?
$264,000,000
None of the above are correct
$265,500,000
$272,500.000
$272,500.000
A firm in perfect competition faces supply and demand functions as detailed below:
Qs = 20,000 + 30P
Qd = 40,000 – 20P
The ATC is also shown below:
ATC = 1000/Q + 200 + 2Q (one thousand divided by Q plus 200 plus two Q).
The firm’s marginal cost at its most efficient level of output are:
$400.00
None of the above
$200.00
$20.00
$400.00
A monopolist demand function is given by P = 80 - 4Q (Eighty minus four Q). Its total costs is given by TC = 10Q + Q2 (Ten Q plus Q squared). How much profit is the monopolist making?
245
200
120
300
245
A firm in long run perfect competition is charging $5.00 for its product. Its long run average Total cost is ATC = 50 - 6Q + 0.2Q2 (Fifty minus six Q plus 0.2 Q squared), how much output should the firm produce?
5
10
25
15
15
If the Supply and Demand functions of a firm in perfect competition are as follows:
Qs = 20,000 + 30P
Qd = 40,000 – 20P
And the firm’s ATC function is as follows:
ATC = 1000/Q + 200 + 2Q (One Thousand divided by Q plus two hundred plus two Q. )
At equilibrium in the short run, this firm is making ….
an above normal profit of $2000.00
an abnormal profit of $4,000.00
A normal profit of 0.
None of these is correct
an abnormal profit of $4,000.00
The equilibrium price in a perfectly competitive market is $10.00. The Marginal Cost function is given by : MC = 4 + 0.2Q. The firm is presently producing 40 units of output. To maximize profits, what should the firm do?
Keep output at the same level
None of these is
Increase output
Decrease output
Decrease output
If the Supply and Demand functions of a firm in perfect competition are as follows:
Qs = 20,000 + 30P
Qd = 40,000 – 20P
And the firm’s ATC function is as follows:
ATC = 1000/Q + 200 + 2Q (One Thousand divided by Q plus two hundred plus two Q. )
At equilibrium in the short run, this firm is making ….
an above normal profit of $2000.00
an abnormal profit of $4,000.00
A normal profit of 0.
None of these is correct
an abnormal profit of $4,000.00
