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Average variable cost function?
To find the Average Variable Cost functions you need the following: ATC, TFC and TC.
How do you calculate long run average cost from the data of short run average cost?
add up the short run variable data (TC) and divide by quantity of that column (Q).
What is tr-tc approach of profit maximization?
The TR-TC approach to profit maximization involves analyzing total revenue (TR) and total cost (TC) to determine the most profitable level of output. Profit is maximized when the difference between total revenue and total cost is the largest, which occurs where marginal revenue equals marginal cost (MR = MC). This approach helps firms identify the optimal production level that maximizes profitability by balancing revenue generation with cost management.
Why must revenue equal variable cost in the short run and total cost in the long run to reach maximum profits?
First, your question needs to be rephrased. In a perfectly competitive market where firms with the same product sell at the same price, Marginal Revenue (increase in revenue by producing another product) equals the price the product is sold. This marginal revenue (MR) needs to be greater than or equal to the variable cost (VC) in the short run, because if their MR < VC that means they are losing money for every unit they are producing. So in the short run it is better to not produce anything so you don't lose money (they would still lose money due to fixed costs, FC). In the long run MR needs to be greater than or equal to total cost (TC = VC + FC). If not, you lose money and it is best to stop producing and leave the market altogether so you do have VC or FC. To maximize profits MR must equal MC, marginal cost, or how much it costs to produce another unit. If MR > MC, the firm can produce more because they would gain more revenue than it would cost. If MR < MC, the firm should produce less because it is costing them more to produce then they are receiving revenue. Hope that answers both sides of your question.
How do you derive the formula for the simple EOQ model?
The simple, or basic, economic order quantity (EOQ) is a special case of the continuous rate EOQ, which can be derived from the equation of total cost as follows. Here is the equation for total cost (TC) as a function of run size (q): TC(q) = K*D/q + P*D + q*H(r - D)/(2r), where: K = Fixed cost per order D = Annual Demand of product q = run size P = Purchasing cost per unit H = Annual holding cost per unit r = Production rate K*D/q = Setup cost P*D = Purchasing cost H(r - D)/(2r) = holding cost. To find the maximum value of q, you take the derivative, d[TC(q)]/dq, set it equal to zero, and solve for q. First, take the derivative: d[TC(q)]/dq = -K*D/q2 + H(r - D)/(2r). Then, to maximize, set this equal to zero, and solve for q: H(r - D)/(2r) - K*D/q2 = 0, q2 = (2*r*K*D)/[H(r - D)], q = √((2*r*K*D)/[H(r - D)]). That's the formula for the continuous rate EOQ. Basic EOQ is the special case of r >> D, which means r - D pretty much equals r, which allows you to cancel the r's in the above equation, giving you the formula: q = √((2*K*D)/H). This is the formula for basic EOQ.
Average variable cost function?
To find the Average Variable Cost functions you need the following: ATC, TFC and TC.
How do you calculate long run average cost from the data of short run average cost?
add up the short run variable data (TC) and divide by quantity of that column (Q).
How long is the 2012 Scion tC?
The 2012 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2009 Scion tC?
The 2009 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2010 Scion tC?
The 2010 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2014 Scion tC?
The 2014 Scion tC is 14 ft. 8.6 in. (176.6 in.) long.
How long is the 2006 Scion tC?
The 2006 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2007 Scion tC?
The 2007 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2011 Scion tC?
The 2011 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2008 Scion tC?
The 2008 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2005 Scion tC?
The 2005 Scion tC is 14 ft. 6 in. (174 in.) long.
How long is the 2013 Scion tC?
The 2013 Scion tC is 14 ft. 6 in. (174 in.) long.
