- A A Firm Faces The Demand Schedule P 200 20 And The Total Cost Function Tc 0 14q 222q 50 Derive Expressions 1 (42.84 KiB) Viewed 19 times
A. A firm faces the demand schedule p = 200 - 20 and the total cost function TC = {0 - 14Q+ 222Q + 50 Derive expressions for the following functions and find out whether they have maximum or minimum points. If they do, say what value of this occurs at and calculate the actual value of the function at this output a) Marginal cost. b) Average variable cost c) Average fixed cost d) Total revenue e) Marginal revenue f) Profit B. Construct your own example of a function that has a turning point. Check the second-order conditions to confirm whether this turning point is a maximum or a minimum. C. Explain why a firm which is a monopoly seller in a market with the demand schedule P = 66.8 -0.4Q and which faces the total cost schedule TC = 220 + 1200 - 1202 + 0.5Q can never make a positive profit.