The Cost and revenue funchonof a firm is given asC=18+7Q+ 10 Q² + SQ 3and P = 15000+ 3Q"@Identify the fixed cost anVariable Cost T6 Find the profit maximizinglevel of output⑥Estimate the profit orotherwise

The cost function will include the fixed cost and variable costs. It will be shown as TC = FC + VC…

The Cost and revenue funchon of a firm is given as /C=18+7Q+iOQ²+5Q3 and P = 1500Qt 3Q" ⑦Identify the fixed cost an Variable Cost u 6 Find the profit maximizing level of output Estimate the profit or otherwise

The Cost and revenue funchon of a firm is given as /C=18+7Q+iOQ²+5Q3 and P = 1500Qt 3Q" ⑦Identify the fixed cost an Variable Cost u 6 Find the profit maximizing level of output Estimate the profit or otherwise

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

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Question

The Cost and revenue funchon
of a firm is given as
C=18+7Q+ 10 Q² + SQ 3
and P = 15000+ 3Q"
@Identify the fixed cost an
Variable Cost T
6 Find the profit maximizing
level of output
⑥Estimate the profit or
otherwise

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Step 1: Define cost function

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Step 2: Identification of variable cost and fixed cost

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Step 3: Solve for profit maximizing output level

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Step 4: Eestimation of the profits

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