Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P = price and Q = Quantity of output), and its total cost of production as TC = 20 + Q + 0.2Q2 Where TC = total cost and Q = Quantity of output) Write the equations of the firm’s costs, as a function of Q:Average Total Cost ATC?Average Variable Cost AVC?Average Fixed Cost AFC.?Marginal Cost MC?The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.?The output level that minimizes average total cost.?please answer all questions

Given: The demand equation for Habib Bank Limited is: Q = 55 – 0.5P The total cost of production is:…

Answered: Habib Bank Limited estimates equation…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 3E

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Habib Bank Limited estimates equation of demand of its product as:

Q = 55 – 0.5P - (where P = price and Q = Quantity of output),

and its total cost of production as

TC = 20 + Q + 0.2Q²Where TC = total cost and Q = Quantity of output)

Write the equations of the firm’s costs, as a function of Q:

Average Total Cost ATC?
Average Variable Cost AVC?
Average Fixed Cost AFC.?
Marginal Cost MC?

The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.?
The output level that minimizes average total cost.?
please answer all questions

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