Suppose Dan's cost of making pizzas is C(Q)=8Q+(Q2/40),C(Q)=8Q+(Q2/40), and his marginal cost is MC=8+(Q/20).MC=8+(Q/20). Dan...
Suppose Dan's cost of making pizzas is
C(Q)=8Q+(Q2/40),C(Q)=8Q+(Q2/40),
and his marginal cost is
MC=8+(Q/20).MC=8+(Q/20).
Dan is a price taker.
a. What is Dan's supply function?
| a. | Q = 20P - 20 if P ≥ 10. |
| b. | Q = 20P + 160 if P ≥ 8. |
| c. | Q = 20P - 160 if P ≥ 8. |
| d. | Q = 40P + 160 if P ≥ 8. |
| e. | Q = 20P - 40 if P ≥ 10. |
b. What if Dan has an avoidable fixed cost of $40? What is Dan's
supply function?
| a. | Q = 20P + 160 if P ≥ 10. |
| b. | Q = 20P - 40 if P ≥ 8. |
| c. | Q = 40P + 20 if P ≥ 8. |
| d. | Q = 20P - 160 if P ≥ 10. |
| e. | Q = 40P - 160 if P ≥ 10. |
Homework Answers
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a.
Ans: c
Explanation: Inverse supply is: P = MC
b.
Ans: d
Explanation: Inverse supply is: P = MC
Add Answer to:
Suppose Dan's cost of making pizzas is
C(Q)=8Q+(Q2/40),C(Q)=8Q+(Q2/40),
and his marginal cost is
MC=8+(Q/20).MC=8+(Q/20).
Dan...
4. Suppose Dan's cost of making pizzas is -4 40 Dan is a price taker. (a)...
4. Suppose Dan's cost of making pizzas is -4 40 Dan is a price taker. (a) What is Dan's supply function? b) What if Dan has an avoidable fixed cost of $10?
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4. Suppose Dan's cost of making pizzas is -4 40 Dan is a price taker. (a) What is Dan's supply function? b) What if Dan has an avoidable fixed cost of $10?
i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.5, market demand curve is Q=1600-2p. Find price (p) of output and the level of output (q) produced by the firm in a long run equilibrium. Find the long run average cost curve for the firm. ii) what happens in the long run if the market demand curve shifts to Q=160-20p?/ -A competitive industry is in long run equilibrium....
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3. Dan needs to hire workers and use ovens to cook and serve pizzas. The number of ovens Dan owns is fixed to be 4. The short-run production function is F(L) = 407L, where L is the total number of hours of labor input per day. Suppose the cost of labor is $10 per hour and the cost of each oven is $40 per day. (a) (5 points) What is the total number of hours of labor needed to produce...
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