Perfect Competition: Profit Maximization (Problem #1)

[@lordcasinator]

He got .5+0.1q by getting the derivative of the cost function. 40 is a constant so it turns to 0. Then u get the derivative of 0.5q which is .5. Then you get the derivative of 0.05q^2. You bring the 2 down so then it's 0.05*2q = 0.1q

[@bigdumbidiotyouare]

I was tracking along just fine until 1:30, where you came up with, .5+0.1q. Can you explain where this came from, I am totally lost.

[@SrinivasanRJN]

first derivative of the equation...dax/dx = a and dax[sq]/dx = 2ax

[@LavinaMadan]

By taking the derivative of TC wrt q

[@omarmokhtar3988]

@@SrinivasanRJN not helping at all bro

[@arpansigdel7600]

The ABC Company produces chemicals in a perfectly competitive market. The current market price is $20. The firm’s total cost is given by C=50+2Q+Q 2 . a. Determine the firm’s profit maximizing output and profit. Write down the equation for the firm’s supply curve in terms of price P. b. Complying with more stringent environmental regulations increases the firm’s fixed cost from 50 to 100. Would this affect the firm’s output? Its supply curve?

[@saurabhagale4750]

Can u please explain me how did u came up with .5+ 0.1q ?

[@songoku-sj3wl]

simple derivative

[@tbajgai]

Who just came here because they couldn't do their homework XD

[@joshcicco3665]

Hey, my microeconomics class only gives the total cost as a number, what do I do in this case?

[@dishaghildiyal3]

Hello sir. please answer this question. In monopoly with multiple plants , plants having same Marginal cost (i.e. same Prices ) produce different quantities for maximizing its profits?

[@EconomicsinManyLessons]

Check this video out: kzbin.info/www/bejne/aZuwiaCGlNx0gpY You will see that the marginal cost is the same for the last unit produced in each plant, but because the marginal cost equations are different, the output differs by plant.

[@daelle659]

clear and to the point thank you

[@EconomicsinManyLessons]

You are welcome!

[@omarmokhtar3988]

I was tracking along just fine until 1:30, where you came up with, .5+0.1q. Can you explain where this came from, I am totally lost.

[@omarmokhtar3988]

@@EconomicsinManyLessons I was tracking along just fine until 1:30, where you came up with, .5+0.1q. Can you explain where this came from, I am totally lost.

[@KumarDeepakCreation]

Please solve this for me A firm in a perfectly competitive market has the following cost function: C = 1/3q3 - 5q2 + 30q +10 If the market-clearing price is 6, obtain the profit maximising level of output. or share me the solution of question with cube (q3)

[@akuffoemmanuelamoako7073]

@@Nallasivam good day please I want the solution also

[@akuffoemmanuelamoako7073]

@@Nallasivam thanks

[@karmachoezom5305]

how to solve for profit maximizing output for the firm if the price of the good is Rs.6

[@asdcsd2682]

allah razı olsun

[@chuchunkit6055]

why firms in the perfect competition market have a profit? i guess the firms have profit in short run but not long run?

[@msuz2]

yeah, the profit in LR will go to 0. they have some, but it is not a big profit. Because when the market goes down, there are many companies who closes etc. then it goes up and there are many who goes into the market again. because there are no barriers to get into the market. something like that.

[@bigdumbidiotyouare]

Never mind, I'm an idiot...

[@yonasberhane6257]

dude am not even sure where you get the value for TC = 40+0.5(75)+0.5(75)^2 in what world would you get 358.75????? i mean seriosuly its a simple math and the answer of TC should be 2,889!

[@EconomicsinManyLessons]

YO B My math is correct! Your total cost equation is not the same one as in the video.

[@yonasberhane6257]

since this is your video i wont argue with you instead can you please show me the calculation? of TC = 40+0.5(75)+0.5(75)^2 = ? step by step. because for me, TC = 40+0.5(75)+0.5(75)^2 => TC = 40+37.5+0.5(5625) => Tc = 77.5+0.5(5625) => TC = 77.5+2812.5 => TC = 2,890 unit! if there`s anything wrong i have made, please correct me. my purpose here is to know!

[@EconomicsinManyLessons]

YO B plug q = 75 into TC = 40 + 0.5q + 0.05q^2. Notice the last term is 0.05q^2, not 0.5q^2.

[@yonasberhane6257]

oh f**k me! dame you are right! the value which i got was by squaring 75 and multiplying it by 0.5q but when i square 75 and multiply it by 0.05q its totally different. you are right thank you very much!!

[@babatundeadedayo4061]

@@yonasberhane6257 i still dont get it

[@MG-ui8jk]

Doesn't help me

[@betyawoke7053]

What?????

[@betyawoke7053]

Waw

[@omarmokhtar3988]

I was tracking along just fine until 1:30, where you came up with, .5+0.1q. Can you explain where this came from, I am totally lost.

[@omarmokhtar3988]

I was tracking along just fine until 1:30, where you came up with, .5+0.1q. Can you explain where this came from, I am totally lost.