if Q = 15
C1 = 3600 + 65*15 + 36*15^2 = 12675
C2 = 900 + 900*15 + 15^2 = 14625
As C1 is lower, technology 1 should be used
if Q = 25
C1 = 3600 + 65*25 + 36*25^2 = 27725
C2 = 900 + 900*25 + 25^2 = 24025
As C2 is lower, technology 2 should be used
Consider a firm with two technologies to choose between when producing output. The cost function ...
A firm has cost function C = 12 - 24Q + 36Q2. The firm is producing 6 units of output Calculate values for these: a) total cost b) total fixed cost c) total variable cost d) average total cost e) average fixed cost average variable cost g) marginal cost (Clearly label each answer and show all calculations that you do, or you will receive no credit for your answers.)
A firm is producing 4 units of output at an average total cost of $45. When the firm produces 5 units of output, average total cost rises to $50. What is the marginal cost of the fifth unit of output? $10 $25 $45 $70
A firm is producing 4 units of output at an average total cost of $50. When the firm produces 5 units of output, average total cost falls to $45. What is the marginal cost of the fifth unit of output? A. $10 B. $25 C. $45 D. $70
Given the total cost function for a firm is (Q = output and TC = total cost) Q TC 0 0 1 20 2 39 3 56 4 71 5 84 6 95 the average total cost of producing six units of output is $15.83 True OR Flase
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q units that market output Q = q1 + q2. They face market inverse demand of P-400-20. Firm l's Total cost is given by TG, = 2q3. Finn 2's by TC2-2 . 10, what is Firm l's equilibrium profit maximizing output level, qǐ? 11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q. = qi...
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
2 3 and 4 b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
4. (25 points) Suppose there are only two firms producing widgets. The total cost function for each firm is identical and is given by T℃(a = 8h, where gi is the output of firmi A market research company has found that demand for widgets can be described by the inverse demand function P 200 2Q, where Q-q (a) (10 points) A firm's action in the Courot Duopoly game is to choose an output level. Draw each firm's reaction function as...
Assume a certain firm is producing 1000 units of output (so Q = 1000). At Q = 1000, the firm’s marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. Refer to Scenario 14-1. To maximize its profit, what should the firm do? Question 17 options: It should shut down. It should decrease its output, but continue to produce. It should continue to produce 1000 units. It should increase its...
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...