--%>
Assignment Help - homework help

Question on minimum price to generate positive output

The manager of watch creating firm operating into competitive market. Cost of production is denoted through C = 100 + Q2, Here Q mention the level of output and C is net cost. (The marginal cost of production is denoted as 2Q. The fixed cost of production is $100.) At what minimum price will the firm generate positive output?

A firm will generate in the short run if the revenues it receives are greater than its variable costs. Remember that the firm's short-run supply curve is its marginal cost curve above the minimum of average variable cost. Here, average variable cost is VC/Q =Q2/Q= Q. Also, MC is equivalent to 2Q. So, MC is greater than AVC for any quantity greater than 0. It means that the firm generates in the short run so long as price is positive.

 

   Related Questions in Biology

  • Q : Role performed by pneumatic bones What

    What is role performed by the pneumatic bones?

    		•
  • Q : Why can the amnion be considered as

    Why can the amnion as well be considered as an adaptation to the terrestrial life?

    		•
  • Q : Describe Quality management system or

    Describe QMS: In accordance with ISO 9001:2000 a quality management system will provide your organization along with a set of processes that make sure a common sense approach to the management of your organization.

  • Q : Memory trace or memory engram Briefly

    Briefly define the term memory trace or memory engram?

    		•
  • Q : Describe Supplier Relationship

    SRM: This stands for Supplier Relationship Management. It's very effective for the companies that have large number of users whom directly can purchase the material by using the Shopping Cart screen for which the m

    		•
  • Q : Structural flat representation of the

    Write down the structural flat representation of the amino acid molecule?

    		•
  • Q : Endosymbiotic hypothesis-origin of

    What is endosymbiotic hypothesis concerning the origin of the mitochondria? And also write down the molecular facts which support the hypothesis. To which other cellular organelles can the hypothesis as well be applied?

    		•
  • Q : Starting and the end of third

    Name the events which mark the starting and the end of third interphase period? What occurs in the cell in this period?

    		•
  • Q : Primary-secondary constrictions of a

    Name the primary and secondary constrictions of a chromosome? Also name the other name provided to the secondary constriction?

    		•
  • Q : The Balanced Scorecard approach for

    In the 1970s and 1980s companies were starting to recognize that focusing purely on the hard aspects of business was not necessarily the route to success. The work was started by Tanner Pascal & Athos who wrote the book 'The Art of Japanese Management.'3 They

    		•