BUS 207 Lecture Notes - Form 10-Q
6 Dec 2018
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Textbook: ch. 2 qs 1. 3, 2. 4, 3. 2, 3. 3, 4. 4, 4. 5, 4. 7, 4. 9, 5. 3, 5. 6, 5. 7. A firm faces the following average cost function. Ac = 1/3 q2- 18q + 120 + 15/q. Calculate the output level that minimizes (i) marginal cost (ii) average variable cost. = 200 1/3q3 + 5. 5q2 28q. A firm faces the following average cost function: Ac = q2 18q + 100 + 10q-1. Find q which minimizes (a) average variable cost (b) marginal cost. A firm faces the following demand and cost functions: Tc = q3 8q2 + 20q + 2 (i) calculate the revenue-maximizing price and quantity. (ii) calculate the profit-maximizing price and quantity. An early introduction (beating rivals to market) would greatly enhance the company"s revenues. However, the intensive development effort needed to expedite the introduction can be very expensive. Revenues and costs associated with the new product are given by:
