Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (b) Derive the short run supply function for Jessica. Suppose p = 61. How much y...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (c) Derive the long run supply function for Jessica. Suppose p = 61. How much output...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. Derive the short run supply function for Jessica. Suppose p = 61. How much y does Jessica supply in the short run? What is Jessica's producer surplus (1.e. total revenue less total variable costs) in the short run?
Question 2: Supply Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this p submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost functi Average fixed cost function. Once you obtain these, sketch them on the grid below. AC, AVC, AFC, MC (b) Derive the short run supply function for Jessica. Suppose p = 61....
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. Show that the MC curve intersects the AVC curve and the AC curve at the minimum...
Suppose the short run cost function for a competitive firm is C(Y)= 4Y2+ 200 where Y is the total output. Find the profit maximizing supply for the firm if the output price is $16 and the maximum profit. What is its short run decision: To produce or not to produce?
Keep c(y) = 200−10y+ 0.5y^2 as the cost function of the firm. a) What is the average cost of producing y units of output? b) What, therefore, will be the optimum output in the long run (y*LR)? c) What is the average cost at the optimum output? d) What is the long run market price, p*LR? e) What is the firm’s total revenue in the long run? f) What is the firm’s total cost in the long run?
3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 - 125P ; and total cost function TC - 50 +0.00802 a. Write the equation for the inverse demand function. (1 pt) b. Find the marginal revenue function. (1 pt) c. How much output should the manager produce to maximize profit? What price should be charged for the output? (2 pt) d. Calculate the marginal cost function. (2 pt) e. At the output level, how...
Suppose the production function is given as ? = √??. Suppose also that the price of labor ? = 10 and the price of capital ? = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...
Suppose a firm faces a total cost function of: T C(Q) = 55 − 2Q + 10Q 2 (a) How would you express the average fixed cost for any level of output? What is the average fixed cost for 5 units of output? (b) How would you express the variable costs? What are variable costs when output is 6? (c) What is the marginal cost for the 12th unit of output? (d) At what level of output do marginal costs...