Homework Answers
a.
b.
The economies of scale exist when long-run Average total cost continues to decrease with the increase in the output level.
As it can be seen in the table that AC decreases continously from first unit of output upto 10th unit of output.
It means there exists economies of scale.
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4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and...
4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and...
4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and its variable cost per unit of output is 5. a. Fill in the following table. Fixed Total Cost, Avg. Var. Variable Cost, VC Output, Cost, Marginal Cost MC Avg. Cost, Avg. Fixed Cost, AFC Cost, FC AVC АС 10 b. Does this firm's short-run cost structure display economies of scale? Why or why not?
Question 3.(12 points). Suppose a firm has a short-run cost function: C(q) = 1000 + 2009...
Question 3.(12 points). Suppose a firm has a short-run cost function: C(q) = 1000 + 2009 - 5q2 + 0.573. What are the fixed cost (F), the variable cost function (VC), the marginal cost (MC), the average cost (AC), the average fixed cost (AFC) and the average variable cost (AVC)?
3) Suppose the cost curve for a firm producing sneakers is TC 1010 q - 4q-...
3) Suppose the cost curve for a firm producing sneakers is TC 1010 q - 4q- + 3.1 (10 points) What are the firm's fixed costs, variable costs, average costs, average fixed cost, average variable costs, and marginal costs? 3.2 (10 points) Graph all 7 cost functions (TC, VC, FC, AC, AVC, AFC, MC) for quantities q 0 to q 10. You can use the Excel program to generate these graphs, plot C, VC, and FC in one graph and...
Assume the short run variable cost function for Japanese beer is VCequals0.5q Superscript 0.8. If the...
Assume the short run variable
cost function for Japanese beer is VCequals0.5q Superscript 0.8. If
the fixed cost (F) is $600 and the firm produces 400 units,
determine the total cost of production (C), the variable cost of
production (VC), the marginal cost of production (MC), the
average fixed cost of production (AFC), and the average variable
cost of production (AVC). What happens to these costs if the firm
increases its output to 500? Assuming the firm produces 400
units,...
Assume the short run variable cost function for Japanese beer is VC = 0.590.67 If the...
Assume the short run variable cost function for Japanese beer is VC = 0.590.67 If the fixed cost (F) is $1800 and the firm produces 400 units, determine the total cost of production (C), the variable cost of production (VC), the marginal cost of production (MC), the average fixed cost of production (AFC), and the average variable cost of production (AVC). What happens to these costs if the firm increases its output to 500?
A firm’s short run cost function is C(q)=150q-4q^2+0.4q^3+275 . Determine the fixed cost, F; the average...
A firm’s short run cost function is C(q)=150q-4q^2+0.4q^3+275 . Determine the fixed cost, F; the average variable cost, AVC; Average Fixed Cost, AFC; Average Cost, AC; and the Marginal Cost, MC.
Assume the short run variable cost function for Japanese beer is VCequals0.55q Superscript 0.67. If the...
Assume the short run variable cost function for Japanese beer is VCequals0.55q Superscript 0.67. If the fixed cost (F) is $1800 and the firm produces 500 units, determine the total cost of production (C), the variable cost of production (VC), the marginal cost of production (MC), the average fixed cost of production (AFC), and the average variable cost of production (AVC). What happens to these costs if the firm increases its output to 550? Assuming the firm produces 500 units,...
Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital a...
Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital are used in the short run. Labor costs $20 per unit. 7. Total Cost Average Average Marginal Variable Cost |(MC) Fixed Units of Units of Variable Average Fixed Labor (L) Cost (FC) Cost (VC) (TC) Total Cost Output (ATC) (Q) Cost Cost (AFC) (AVC) 0 0 1 2 2 4 3 6 4 8 10
Firm Supply (Chapter 23 in the book) Problem 3. A competitive firm's short-run cost function is...
Firm Supply (Chapter 23 in the book) Problem 3. A competitive firm's short-run cost function is c() - y - 8y2 + 30y + 5. The marginal cost of this cost function is MC() - 3y2-16y + 30. (a) What is the firm's average variable cost function, AVC(y)? (b) On the graph, plot and label average variable cost AVC(y) and marginal cost MC(y) functions. (c) Average cost is decreasing as output rises if output is less than what number? (d)...
SECTION marginal cost (MC) in the tah. PRINT LAST NAME, FIRST NAME SHORT-RUN COSTS Fall in...
SECTION marginal cost (MC) in the tah. PRINT LAST NAME, FIRST NAME SHORT-RUN COSTS Fall in the missing alufer total cost ), total fixed cost (TFC), total variable bel below, use the data to fill in the blanks. al cost (ATC), average variable cost (AVC), and marginal cost (MC) AFC AVC MC TVC ATC OTC TFC 0 560 SLO IS 2 S120 s Ass 60 $68 Total fixed costs are equal to 1)S COD , regardless of how much output...
4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and its variable cost per unit of output is 5. a. Fill in the following table. Fixed Total Cost, Avg. Var. Variable Cost, VC Output, Cost, Marginal Cost MC Avg. Cost, Avg. Fixed Cost, AFC Cost, FC AVC АС 10 b. Does this firm's short-run cost structure display economies of scale? Why or why not?
Question 3.(12 points). Suppose a firm has a short-run cost function: C(q) = 1000 + 2009 - 5q2 + 0.573. What are the fixed cost (F), the variable cost function (VC), the marginal cost (MC), the average cost (AC), the average fixed cost (AFC) and the average variable cost (AVC)?
3) Suppose the cost curve for a firm producing sneakers is TC 1010 q - 4q- + 3.1 (10 points) What are the firm's fixed costs, variable costs, average costs, average fixed cost, average variable costs, and marginal costs? 3.2 (10 points) Graph all 7 cost functions (TC, VC, FC, AC, AVC, AFC, MC) for quantities q 0 to q 10. You can use the Excel program to generate these graphs, plot C, VC, and FC in one graph and...
Assume the short run variable
cost function for Japanese beer is VCequals0.5q Superscript 0.8. If
the fixed cost (F) is $600 and the firm produces 400 units,
determine the total cost of production (C), the variable cost of
production (VC), the marginal cost of production (MC), the
average fixed cost of production (AFC), and the average variable
cost of production (AVC). What happens to these costs if the firm
increases its output to 500? Assuming the firm produces 400
units,...
Assume the short run variable cost function for Japanese beer is VC = 0.590.67 If the fixed cost (F) is $1800 and the firm produces 400 units, determine the total cost of production (C), the variable cost of production (VC), the marginal cost of production (MC), the average fixed cost of production (AFC), and the average variable cost of production (AVC). What happens to these costs if the firm increases its output to 500?
Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital are used in the short run. Labor costs $20 per unit. 7. Total Cost Average Average Marginal Variable Cost |(MC) Fixed Units of Units of Variable Average Fixed Labor (L) Cost (FC) Cost (VC) (TC) Total Cost Output (ATC) (Q) Cost Cost (AFC) (AVC) 0 0 1 2 2 4 3 6 4 8 10
Firm Supply (Chapter 23 in the book) Problem 3. A competitive firm's short-run cost function is c() - y - 8y2 + 30y + 5. The marginal cost of this cost function is MC() - 3y2-16y + 30. (a) What is the firm's average variable cost function, AVC(y)? (b) On the graph, plot and label average variable cost AVC(y) and marginal cost MC(y) functions. (c) Average cost is decreasing as output rises if output is less than what number? (d)...
SECTION marginal cost (MC) in the tah. PRINT LAST NAME, FIRST NAME SHORT-RUN COSTS Fall in the missing alufer total cost ), total fixed cost (TFC), total variable bel below, use the data to fill in the blanks. al cost (ATC), average variable cost (AVC), and marginal cost (MC) AFC AVC MC TVC ATC OTC TFC 0 560 SLO IS 2 S120 s Ass 60 $68 Total fixed costs are equal to 1)S COD , regardless of how much output...
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