Suppose a firm with continuous production has short run cost function: C(Q) = 25Q2 + 200Q + 1000.
1) Give this firm’s fixed cost.
2) Give this firm’s variable cost function VC(Q).
3) Calculate the firm’s variable cost if it produces Q = 5 units; i.e., compute VC(5).
4) Calculate this firm’s marginal cost function MC(Q); i.e. differentiate the cost function.
5) Neatly graph this firm’s marginal cost function MC(Q) from 0 up to Q = 10 units. 6) Neatly shade the area under the curve from 0 up to Q = 5 units. Calculate this area (you may recognize the area as being made up of a rectangle and a triangle, whose areas are straightforward to calculate as base times height for the rectangle and ½ times base times height for the triangle).
Suppose a firm with continuous production has short run cost function: C(Q) = 25Q2 + 200Q...
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)?
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 36. If the price of Labor, w = $12 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 48 units of output? MC = ________________________
Suppose a competitive firm has cost function: C(q) = a + bq + cq2 + dq3, where a,b,c,d are constants. What is the marginal cost function? What is the firm’s variable and average cost of output, in terms of q? What is the firm’s fixed cost? What is the firm’s profit maximization condition?
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.
The short run cost function for Crunchies has Marginal Cost MC = 5+.4Q (where Q is measured in tonnes/period and MC is in $/tonne) and Fixed Costs of $720/period. Give the formula for Average Total Cost (ATC). Word Answer:
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,...
Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore marginal costs of MC = 3/4Q. Assume the market for this firm’s goods is perfectly competitive with a market price, P = 24. (a) Given the information above, is the firm in the short-run or long-run? (1 point) (b) Write down the firm’s marginal revenue equation. (1 points) (c) How many units should the firm produce if it wants to maximize profit? (3 points)...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = ½ L-1/2K1/2and MPK = ½ L1/2K-1/2 a) Suppose the price of labor is w = 18, and the price of capital is r = 2. Derive the firm’s total cost function. b) What is the firm’s marginal cost? c) For this problem, you will sketch the graph of the firm’s isoquant for Q...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 49. If the price of Labor, w = $6 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 28 units of output?
The short run cost function for Crunchies has Marginal Cost MC = 5+.4Q (where Q is measured in tonnes/period and MC is in $/tonne) and Fixed Costs of $720/period. Give the level of Q at which ATC reaches a minimum Numeric Answer: