1
answer
0
watching
352
views
28 Sep 2019
Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q.
1) What does this function imply about the effect of the law of diminishing returns on Kelson's short-run function?
2) Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output.
3) Assume Kelson operates as a price taker in a competitive market. What is this firm's profit-maximizing level of output if the market price is $175?
4) Compute Kelson's short-run supply curve for its product.
Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q.
1) What does this function imply about the effect of the law of diminishing returns on Kelson's short-run function?
2) Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output.
3) Assume Kelson operates as a price taker in a competitive market. What is this firm's profit-maximizing level of output if the market price is $175?
4) Compute Kelson's short-run supply curve for its product.
Romarie Khazandra MarijuanLv10
28 Sep 2019