Examlex

Solved

A Competitive Firm Sells Its Product at a Price of $0.10

question 93

Essay

A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are:
TC = 5 - 0.5Q + 0.001Q2
MC = -0.5 + 0.002Q,
where TC is total cost ($) and Q is output rate (units per time period).
a. Determine the output rate that maximizes profit or minimizes losses in the short term.
b. If input prices increase and cause the cost functions to become
TC = 5 - 0.10Q + 0.002Q2
MC = -0.10 + 0.004Q,
what will the new equilibrium output rate be? Explain what happened to the profit maximizing output rate when input prices were increased.


Definitions:

Transpersonal Caring Occasion

An event or encounter in which a deep, meaningful connection is formed between nurse and patient, enhancing healing and well-being.

Compassion

A deep awareness of and sympathy for another's suffering, coupled with a desire to alleviate it.

Intuitive Skills

The ability to understand or know something without conscious reasoning, often based on gut feelings or experiences.

Humanistic-Altruistic

Characterized by a caring, selfless attitude towards others, often associated with a focus on human dignity and the welfare of others.

Related Questions