The next 7 questions refer to the following: A consulting company ...
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The next 7 questions refer to the following:
QD = 25 500 – 2PX – 0.2M
QS = 22 600 + 1.5PX – 25w
where PX is the price of X, M is Income, and w is wage rate.
The forecast for the next year is M = $64 000; w = $410 .
Cost conditions of an individual business are estimated to be:
TC = 2Q2 + 400
MC = 4Q
1 - The price forecast for next year is
P* = $.
2 - The market equilibrium quantity is expected to be
Q* =.
3 - The profit-maximizing output choice for the individual firm is
q* =.
4 - The firm's profit (loss) is expected to be
$.
5 - At the profit-maximizing output choice, the individual firm's average variable cost is
AVC = $.
6 - At the profit-maximizing output choice, the individual firm's average total cost is
ATC = $.
7 - If individual businesses are identical, the number of firms in this market is equal to
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