Question: Assessment 2:

1. Given a cost function:

   TC = 100 + 6Q

   and an quantity range from 1 -10, complete the table below (50 pts)
   Q       FC      VC    TC     AFC   AVC   ATC     MC
   0
   1
   2
   3
2. Assuming the market above is a perfect competition and facing the demand and supply function below:
   Scenario 1:
   Qd = 100 - 2P
   Qs = -100 + 3P
   Solve for the equilibrium price.
   Since a firm in a perfect market takes the price as given, use the price calculated above and the cost functions above to determine the output level that the firm should produce and why? Should the firm keep producing in the short run?(25 pts)
   Scenario 2:  Assuming there is change in the demand function
   
   Qd =  200 - 2P
   Qs = -100 + 3P
   Calculate the equilibrium price and use the calculated price and the cost functions above to determine the output level that the firm should produce and why?   Does the firm make any profit and how much? (25 pts)
3. Finally, Graph the cost functions above and explain the intricacies. (50 pts)

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document