Please Show Each and Every Working VERY CLEARLY!utility 8. The total cost C(Q) of a firm isC(Q) = Q- 12 Q? + 40 Q+ 500where Q denotes the output. Determine:(a) AC and the slope of AC .5) MC and the Minimum of MC.(c). Value of Q for which MC= AVC where VC denotes the variable costkd) Verify that MC = AVC at the output level obtained at above (c).

We have formulas for each part as AC = TC/ Q MC = dTC/dQ AVC = TVC/Q Using these formulas we can…

8. The total cost C(Q) of a firm is C(Q) = Q- 12 Q? + 40 Q+ 500 where Q denotes the output. Determine: (a) AC and the slope of AC. 6 MC and the Minimum of MC. (c). Value of Q for which MC= AVC where VC denotes the variable cost kd) Verify that MC = AVC at the output level obtained at above (c).

8. The total cost C(Q) of a firm is C(Q) = Q- 12 Q? + 40 Q+ 500 where Q denotes the output. Determine: (a) AC and the slope of AC. 6 MC and the Minimum of MC. (c). Value of Q for which MC= AVC where VC denotes the variable cost kd) Verify that MC = AVC at the output level obtained at above (c).

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

See similar textbooks

Related questions

Q: Determine whether it is true or false The difference between economic profit and accounting profit…

A: According to given question In simple words economic profit is gradually referred to as in general…

Q: 16. The long-run average total cost curve: A) displays declining unit costs so long as output is…

A: Long run average cost curve represents least average cost to produce any given level of output. In…

Q: (b) A firm has an average cost function 125, q? 4. 16 A(q) where q is the firm's output. (i)…

A: i) The average cost if minimum at that level of output where the first-order derivative of average…

Q: total revenue (TR) and total cost (TC) if

A: If price is equal to AC then at this situation TR= TC ( since TR=AC×Q and TC=AC×Q )

Q: An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units per…

A: Cost function shows how the cost of the production of a good changes with the change in the quantity…

Q: 3. Assess which of the following is true and which is false. A firm’s total cost function is given…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 1. Economies of scale exist over the range of output to units. Does the firm experience diseconomies…

A: Economies of Scale This describes the cost savings that occur as a company expands its scale of…

Q: 5. True or False. The U shape of the long-run ATC curve is the result of diminishing returns..

A: We are going to explain the concept economies of scale to answer this question.

Q: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC…

A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC =…

Q: Suppose ATC (Q=500) = $300 per unit & ATC(Q=501) = $301 per unit, where Q denotes output level, ATC…

A: GIVEN Suppose ATC (Q-500) = $300 per unit ATC(Q=501) = $301 per unit where Q denotes outout…

Q: Cost £ AC Quantity per week Q Figure 3 Short run average cost curve for a firm Figure 3 shows the…

A: Cost refers to the value of all the inputs that are used up in the production of a good or in the…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Solving with the help of formula

Q: The Lawn Ranger, a landscaping company, has total costs of $5,000 and total fixed costs of $3,000.…

A: Total cost is the cost incurred by the producer for producing the goods and services and its include…

Q: ii) Listed in the table is the short-run total cost for Firm C. Output 1 2 3 4 Cost 20 39 57 74 90…

A: The diminishing return means the marginal cost should increase as the output increases.

Q: If a firm doubles all of its inputs and output more than doubles (e.g. goes from 100 to 225), then…

A: Answer- There are increasing returns to scale.

Q: 6. A firm's long-run total cost function is given by LTC = 115.000Q-500Q2 + G where Q is the…

A: Gradually in simple words we can say that the economies of scale are determined to be as the cost…

Q: 9. For the cost function C(Q) = 100 + 20 - 302, the marginal cost of producing 2 units of output is…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: QUESTION 3 Explicit costs are and implicit costs are O Paid in money; incurred when a firm gives up…

A: In a market, firms bear two types of cost that are implicit cost and explicit cost. These cost are…

Q: Refer to Figure 13-7. This firm experiences disecono mies of scale at what output levels? Figure…

A: Average total cost is the ratio of the total cost and total quantity i.e Average total cost =…

Q: Q1. Over a reasonable range of quantities, firms producing goods A and B have th following cost…

A: Cost function : C = 100 + 4qa + 8qb - 2qaqb Economies of scale refers to the gradual decline…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-…

A: LMC is the marginal cost which is the change in total cost by producing an additional unit of output…

Q: a. Find the first, second and third derivatives of the following total cost function: TC(Q)=Q3…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 7. Product & Cost Curves: Numerical Cobb-Douglas Case > Continue with the general functions from the…

Q: 6. If the Marginal Cost for a product is found to be MC = 8x + 60, and the Marginal Revenue is given…

A: We are going to use Profit maximization method to answer this question. Use differentiation and…

Q: 15. If a firm's short – run total cost function is TC = 20 + 2q? then its short run average cost at…

A: TC = 20 + 2q^2 AC = TC/q by putting the value in TC of q = 1 TC = 20 + 2. (1) ^2 AC = TC…

Q: 22. Refer to Table 13-15, What is the total fixed cost for this firm? a. $30 b. $20 c. $40 d. $50…

A: Cost is the expenditure face by producer in production , there is total cost , average cost ,…

Q: 1. Suppose a cost function such as C(q) = 10 + 159 + 4q (a) Find the ATC, AVC, AFC and MC (b) Find…

A: The cost of production indicates the money spent on the fixed and variable factor of production. The…

Q: 3. Suppose the firm's production function is given by F(K,L) = min (Kt,Lt) (a) Derive the long-run…

A: The fixed proportion production function, f(K,L) =Q= minK13,L13 In this production function, the…

Q: A company has cost and revenue functions, in dollars, given by C(q) = 6000 + 10g and R(q) – 12q .…

Q: total revenue (TR) and total variable cost

Q: firm’s total fixed cost is $360,000. Construct a table of its total and average fixed costs for…

A: The firm’s total fixed cost is given as $360,000. The table can be constructed as follows : TFC :…

Q: Question 7 Short run costs A firm's short-run cost function is C(q) = 10q - 12q? +0.5q+ 400 1. Find…

A: Here, a firm's short-run cost function is given as: C(q)=10q-12q2+0.5q3+400

Q: MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are…

A: The profit function of X-brand energy drink production can be written as P(x) = R(x) - C(x)…

Q: 5. A firm's short-run cost curve is C(Q) : of b are cost, average cost and average variable cost…

Q: In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall…

A: Average fixed cost (AFC) refers to the total fixed cost (TFC) per unit of output AFC = TFC/Q Where Q…

Q: A firm has a Cobb-Douglas production function, q = 2L^0.5K^0.5 . If it faces prices of w = 20 and r…

A: q=2L0.5×K0.5q=2L0.5×(100)0.5q=2L0.5×10q=20L0.5L=q202L=q2400

Q: (ii) The total cost C(Q) of a firm is C(Q) = Q² - 6 Q? + 10 Q +100 where Q denotes the output. (a)…

A: ii)a) Variable cost is the cost which depends on output while fixed cost is independent of level of…

Q: (MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2…

A: Given, B = -Q 2 + 4,500Q C= 2Q 2 A. Profit is the difference between the benefits and the cost.…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Suppose Ike's bike is presently producing 500 bikes per month in its only factory. its short run…

Q: QUESTION 6 When Hidden City Cafe uses K units of capital and L units of labor, it can produce Q…

A: Q = 5L1/2 L1/2 = Q/5 Squaring, L = Q2 / 25 TC = wL + rK TC = 25 x (Q2 / 25) + 20 x 5 TC = Q2 + 100

Q: . (20 points) A firm has a cost function c = 0.5g³ – q² + q. (a) What is its fixed cost? (b) At what…

A: Total cost consists of fixed cost and variable cost. Fixed cost is constant and does not depend on…

Q: runction 125 q? 4. 16 A(q) where q is the firm's output. (iv) Write an equation for the total cost…

A: Part: 1 The total cost(TC) function is the cost of producing total output. The formula for TC is…

Q: If a firm experiences economies of scale over all relevant levels of output, its long-run average…

A: A production function illustrates the relationship between the inputs used and the output produced…

Q: onsider a production function Q = (K1/2) + (L1/2) + (M1/2) where L, K, M represent labor, capital,…

A: Given Production function Q = (K1/2) + (L1/2) + (M1/2) Price of L, K, M are 1,1,and 1 Q=12

Q: Tex has a small plant that produces storm windows. Its total revenue function is ?? = 5.4?, and the…

A: As we answer only 3 subparts and the question has more than 3 subparts, so we would be answering the…

Q: [16] Operating in the short run with one fixed input and one variable input, the marginal product of…

A: (16) Answer: Given Information, Marginal Product (MP) = 10 - X Output price = 3 Variable Price (Let…

Question

100%

Please Show Each and Every Working VERY CLEARLY!

utility

8. The total cost C(Q) of a firm is
C(Q) = Q- 12 Q? + 40 Q+ 500
where Q denotes the output. Determine:
(a) AC and the slope of AC .
5) MC and the Minimum of MC.
(c). Value of Q for which MC= AVC where VC denotes the variable cost
kd) Verify that MC = AVC at the output level obtained at above (c).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step by step

Solved in 6 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
A firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?
(c) Should a firm shut down and why if its revenue is R=$ 1, 000. Its variable cost VC=$ 500 and its sunk fixed cost is F= $ 600. Its variable cost VC=$ 1, 500 and its sunk fixed cost is F= $ 500.
b) A firm has an average cost functionA(q) =125 +q^2 - 4 q 16where q is the firm′s output. (iv) Write an equation for the total cost function.(v) Hence calculate the level of output for which total costs are minimum.
1. The cost of producing 5 gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5 gallon water bottles are produced find the: (a) total cost (b) average cost (c) marginal cost (d) marginal average cost
. Marginal Cost Suppose the monthly total costfor the manufacture of 19-inch television sets isC(x)= 2546 + 98x, where x is the number of TVsproduced each month.a. What is the slope of the graph of the total costfunction?b. What is the marginal cost for the product?c. Interpret the marginal cost for this product
) A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 per day when producing 15 sinks. The company has a daily demand functionof q = 360 − p, where q is the number if laundry sinks demanded and p is te price ofa laundry sink. Find a function for the average cost of this company. (c) If production increases continuously, what is likely to be the average cost per sink? (d) How many laundry sinks will the company need to produce in order to maximise it′s profits? (e) What is the maximum profit?
Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.
Q1.It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. Required: (i) Make a table showing the cost of producing 20,40,60,80 and 100 cupcakes. (ii) Make a table showing the revenue from selling 20,40,60,80 and 100 cupcakes. (iii) Write an algebraic expression representing the cost C as a function of the number of cupcakes x that are produced. (iv) Write an algebraic expression representing the revenue R as a function of the number of cupcakes x sold. (v) Graph both functions on the same coordinate axes. (vi) From your graph find coordinatae at which cost equals revenue. (vii) Using your graph,determine how many cupcakes need to be made to produce revenue of at least $1,029.How much profit is made for this number of cupcakes?
show calculations A wheat seed dealer has a cost function: C = 100 + 20Q +Q2. Inverse demand is: P = 620 -2Q. Maximum profit is: A. 38,400 B. 36,200 C. 39,200 D. 29,900 Handwritten solution not required correct answer will get instant upvote.
7. Complete the cost table to make it consistent with the given numbers. Q 0 TC 20 TFC TVC ATC AFC AVC MC 1 1 2 3 4 3 4 12 5 75 6 7 8 9 16 24.85 86 360 10 540 Plot the total cost functions for the range of output 0 - 10 on one diagram, and the average and marginal cost functions on another diagram.
Suppose that the cost function for a commodity is C(x) = 40 + x2 dollars. (a) Find the marginal cost at x = 4 units. MC(4) = Tell what this predicts about the cost of producing 1 additional unit. The cost to produce the 5th unit is predicted to be $ (b) Calculate C(5) – C(4) to find the actual cost of producing 1 additional unit. Need Help? Read It Watch It