Using the knowledge of calculus derive and sketch the marginal cost (MC) and average cost (AC) functions from the following total cost (TC) function. Using the graph briefly discuss the relation between MC and AC.
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Using the knowledge of calculus derive and sketch the marginal cost (MC) and average cost (AC)...
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.
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...
Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely used in economics. (a) Suppose the total cost function is C(q) = 9+0.250, where is the output level of the firm. Derive the marginal cost and the average cost implied by this cost function. Provide a diagram (with q on the horizontal axis) to illustrate the shape of these MC and AC functions. (b) What does returns to scale mean? Does a firm with...
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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.
4. Using a marginal cost (MC)-average cost (AC) graph show the three relationships discussed in class about the relationship between MC and AC and what is happening to AC when a. MC is greater than AC. b. MC is less than AC. c. MC is equal to AC.
How can marginal cost be expressed mathematically? Marginal cost (MC) can be expressed as MC = " where AC is average cost and is output. TC - FC, where TC is total cost and FC is fixed cost. A where TC is total cost and Q is output 10 where FC is fixed cost and is output MC where TC is total cost and is output For example, if the total cost of producing three units of output is $2,639...
Quantity Total Cost Q Variable Marginal Cost Marginal Cost Cost MC MC VC (calculated (calculated using TC) using VC) TC O dozen pizzas $300 $0 ܝܕ 350 50 390 90 N 3 420 120 4 450 150 5 490 190 6 540 240 3 420 120 4 450 150 5 490 190 6 540 240 What is the pizzeria's fixed cost? Note: Recall that TC = FC + VC $200 $300 $400 cannot be determined Construct a table in which...
The curves show the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) functions for a firm in a competitive market. Using the straight-line tool, draw a straight line, all the way from the left edge of the graph to the right edge, to represent the minimum price at which the firm should continue operating.
If Marginal Cost (MC) is higher than Average Cost (AC), average cost is a. falling b. rising c. constant d. none of the above
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