Determine the marginal cost of production
Microeconomics
Kelson Electronics a manufacturer of DVRs, estimates the following relation between its marginal cost of production and monthly output: MC=$150+0.005Q
A. What does this function imply about the effect of the law diminishing returns on Kelsons short-run cost functions?
B. determine the marginal cost of production at 1,500, 2,000 and 3,500 units of output.
C. Assume Kelson operates as a price taker in a competitive market. What is this firms profit -maximizing level of output if the market price is $175?
D. determine Kelsons short-run supply curve for its product.
