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Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely...
c) TC() -40q+ 200 Marginal cost MC Average cost AC- Returns to scale Marginal cost: MC-...
c) TC() -40q+ 200 Marginal cost MC Average cost AC- Returns to scale Marginal cost: MC- Average cost: Returns to scale: Name: ECP 4413-Government& Business Spring 2019 Problem Set 1 Due start of class on Tuesday, Jan 22 Please print this out and put your answers here. Showing your work may get you partial credit for incorrect answers. I will not grade work tumed in on anything else. If you must miss class and cannot drop off your answers, email...
e) Suppose that a competitive firm's marginal cost of producing output q is given by MC(q)...
e) Suppose that a competitive firm's marginal cost of producing output q is given by MC(q) -3+2q. Assume that the market price of the firm's product is $9. i) What level of output will the firm produce? (2p) ii) What is the firm's producer surplus? (4p) ii) Suppose that the average variable cost of the firm is given by AVC(g)-3+q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or...
2. Consider a firm producing pizza with production function q = KL, that faces input prices...
2. Consider a firm producing pizza with production function q = KL, that faces input prices w= $10 and r = $100 for labor and capital, respectively. a. Derive the isoquant equation. Find the isoquant of an output q = 1. Draw it in a figure with l in the horizontal axis and k in the vertical axis. b. Does this firm's production exhibit increasing, decreasing or constant returns to scale? Briefly explain c. Find the labor demand, and the...
1. For a constant returns to scale production function: a. marginal costs are constant but the...
1. For a constant returns to scale production function: a. marginal costs are constant but the average cost curve as a U-shape b. both average and marginal costs are constant c. marginal cost has a U-shape, average costs are constant d. both average and marginal cost curves are U-shaped 2. The production function q = 10K +50L exhibits: a. increasing returns to scale b. decreasing returns to scale c. constant returns to scale d. none of the above
2. Find an expression for the MC function given the following average cost functions (a) AC...
2. Find an expression for the MC function given the following average cost functions (a) AC 20 5+30/Q (b) AC 302-4Q+6+100/Q In each case 1) state the value of fixed cost and variable cost, and 2) calculate the value of marginal cost when Q 50
A firm’s marginal cost decreases when it has _______ and its long run average total cost...
A firm’s marginal cost decreases when it has _______ and its long run average total cost decreases when it has _______. A. diminishing marginal returns, decreasing returns to scale B.diminishing marginal returns, increasing returns to scale C. diminishing marginal returns, economies of scope D.increasing marginal returns, increasing returns to scale E. increasing marginal returns, decreasing returns to scale increasing returns to scale increasing marginal returns, decreasing returns to scale
6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal...
6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal cost associated with this function. Determine the value of the firm's marginal cost when Q=50. Graph the MC function with MC on the vertical axis and Q on the horizontal.
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable...
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve. If the average fixed cost curve is...
A firm’s marginal cost decreases when it has _______ and its long run average total cost...
A firm’s marginal cost decreases when it has _______ and its long run average total cost decreases when it has _______. A. diminishing marginal returns, decreasing returns to scale B.diminishing marginal returns, increasing returns to scale C. diminishing marginal returns, economies of scope D.increasing marginal returns, increasing returns to scale E. increasing marginal returns, decreasing returns to scale
all of them Question 7 (1 point) If the long-run average cost is upward sloping, the...
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
c) TC() -40q+ 200 Marginal cost MC Average cost AC- Returns to scale Marginal cost: MC- Average cost: Returns to scale: Name: ECP 4413-Government& Business Spring 2019 Problem Set 1 Due start of class on Tuesday, Jan 22 Please print this out and put your answers here. Showing your work may get you partial credit for incorrect answers. I will not grade work tumed in on anything else. If you must miss class and cannot drop off your answers, email...
e) Suppose that a competitive firm's marginal cost of producing output q is given by MC(q) -3+2q. Assume that the market price of the firm's product is $9. i) What level of output will the firm produce? (2p) ii) What is the firm's producer surplus? (4p) ii) Suppose that the average variable cost of the firm is given by AVC(g)-3+q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or...
2. Consider a firm producing pizza with production function q = KL, that faces input prices w= $10 and r = $100 for labor and capital, respectively. a. Derive the isoquant equation. Find the isoquant of an output q = 1. Draw it in a figure with l in the horizontal axis and k in the vertical axis. b. Does this firm's production exhibit increasing, decreasing or constant returns to scale? Briefly explain c. Find the labor demand, and the...
2. Find an expression for the MC function given the following average cost functions (a) AC 20 5+30/Q (b) AC 302-4Q+6+100/Q In each case 1) state the value of fixed cost and variable cost, and 2) calculate the value of marginal cost when Q 50
6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal cost associated with this function. Determine the value of the firm's marginal cost when Q=50. Graph the MC function with MC on the vertical axis and Q on the horizontal.
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve. If the average fixed cost curve is...
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
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