Suppose the total cost of producing widgets can be described by Y=10X²+50X+100 where Y is the total cost per year and X is the number of widgets. a. Based on the cost function, what are the fixed and variable costs of widget production? b. In a competitive market place, how much would the firm produce and what would be its level of profit if price were equal to $140? c. What is the lowest price at which the firm is willing to produce in the long run?

Suppose the total cost of producing widgets can be described by Y=10X²+50X+100 where Y is the total cost per year and X is the number of widgets. a. Based on the cost function, what are the fixed and variable costs of widget production? b. In a competitive market place, how much would the firm produce and what would be its level of profit if price were equal to $140? c. What is the lowest price at which the firm is willing to produce in the long run?

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 8SCQ: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are...

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