Problem 2 (25%)
Suppose that the shoe market in Rionegro (Ant.) is perfectly competitive and the price of a pair of shoes is $20. “Calzado de Oriente” is a producer of shoes in this market and has the following total cost and marginal cost functions, respectively: CT(q)=500+1/10 q^2, MC(q)=2/10 q .
It is requested:
What part of the total cost function represents fixed costs?
Write the firm's average variable cost equation.
Calculate the number of pairs of shoes that maximize the benefits of “Calzado de Oriente”, and also calculate the benefits of this company.
Find the average total cost for the number of pairs of shoes that maximize profits for this company.
What is the average variable cost of producing the number of shoes that maximizes profits for this entrepreneur?
Problem 2 (25%) Suppose that the shoe market in Rionegro (Ant.) is perfectly competitive and the price of a pair of shoe
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Problem 2 (25%) Suppose that the shoe market in Rionegro (Ant.) is perfectly competitive and the price of a pair of shoe
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!