What is the level of profit? Profit equals $_______________
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What is the level of profit? Profit equals $_______________
Suppose that a firm's production function is...
Suppose that a firm's production function is q = 5x0.5 in the short run, where there...
Suppose that a firm's production function is q = 5x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is S1250 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q) The total cost of producing a level of output q is O A. C(g)-2,000. ca-2,000+ C(q) = 2,000 + Cla)= 800 O B. 25 % C....
If P = $8 and MC = $5 + 2Q, the competitive firm's profit-maximizing level of...
If P = $8 and MC = $5 + 2Q, the competitive firm's profit-maximizing level of output is: a. 1.5 b. 0.2 c. 8 d. 15 2. If a firm faces the demand curve P = 60 – Q and the price is $30, the consumer surplus is: a. 200 b. 300 c. 450 d. 650 3. If the demand curve is P = 60 – Q and the supply curve is Q = P, the market equilibrium...
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values...
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at R = 10,000 and a =. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K, L) = KLi. Let...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm e...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at K = 10,000 and a = 1. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K,L)=KLI. Let w...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q)...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ . (Enter your response rounded to two decimal places.) Suppose that the average...
If the firm produced at this output level, what would the profit be? (Round to two...
If the firm produced at this output level, what would
the profit be? (Round to two decimal points)
Assume a competitive firm faces a market price of $100, a cost curve of C 0.64q 25q+1,600 and a marginal cost curve of MC 1.28q 25. The firm's profit maximizing output level is 58.59 units, the profit per unit is $10.19, and total profit is: $597.03 However, if the firm wanted to maximize the profit per unit, how much would it produce?...
Suppose the firm's production function is Q = K1/3L2/3. a. If the rental rate of capital...
Suppose the firm's production function is Q = K1/3L2/3. a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, and assuming the same production function, how many units of labor and capital should the firm use to produce 12 units of output? c. What is the total cost of producing...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q)...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 6 +29. Assume that the market price (P) of the firm's product is $18. What level of output (q) will the firm produce? The firm will produce 6.00 units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ 36.00. (Enter your response rounded to two decimal places.) Suppose that the average...
need help with 5 and 6 Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm...
need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
Question 82 Not yet answered Points out of 1.oo Remove flag Scenario 14-2 Assume a certain firm is producing Q 1,000 units of output. At Q 1,000, the firm's marginal cost equals S20 and its avera...
Question 82 Not yet answered Points out of 1.oo Remove flag Scenario 14-2 Assume a certain firm is producing Q 1,000 units of output. At Q 1,000, the firm's marginal cost equals S20 and its average total cost equals $25. The firm sells its output for S30 per unit. Refer to Scenario 14-2. To maximize its profit, the firm should Select one: a. shut down. b. decrease its output but continue to produce. C. increase its output. O d. continue...
Suppose that a firm's production function is q = 5x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is S1250 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q) The total cost of producing a level of output q is O A. C(g)-2,000. ca-2,000+ C(q) = 2,000 + Cla)= 800 O B. 25 % C....
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at R = 10,000 and a =. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K, L) = KLi. Let...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at K = 10,000 and a = 1. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K,L)=KLI. Let w...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ . (Enter your response rounded to two decimal places.) Suppose that the average...
If the firm produced at this output level, what would
the profit be? (Round to two decimal points)
Assume a competitive firm faces a market price of $100, a cost curve of C 0.64q 25q+1,600 and a marginal cost curve of MC 1.28q 25. The firm's profit maximizing output level is 58.59 units, the profit per unit is $10.19, and total profit is: $597.03 However, if the firm wanted to maximize the profit per unit, how much would it produce?...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 6 +29. Assume that the market price (P) of the firm's product is $18. What level of output (q) will the firm produce? The firm will produce 6.00 units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ 36.00. (Enter your response rounded to two decimal places.) Suppose that the average...
need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
Question 82 Not yet answered Points out of 1.oo Remove flag Scenario 14-2 Assume a certain firm is producing Q 1,000 units of output. At Q 1,000, the firm's marginal cost equals S20 and its average total cost equals $25. The firm sells its output for S30 per unit. Refer to Scenario 14-2. To maximize its profit, the firm should Select one: a. shut down. b. decrease its output but continue to produce. C. increase its output. O d. continue...
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