ZuoTi.Pro
Question

2. Consider the total cost function TC = TC(Q), where Q is output. Show that average total cost, ATG, reaches its minimum poi

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ATC = TC ATC = T(Q) DATO . o. d (Ic) - Tcd la) O MC- 02 să t mc- AIC d ATC to put d do ATC do se to tmc- ATC) so Since Q7o .

0 0
Add a comment
Know the answer?
Add Answer to:
2. Consider the total cost function TC = TC(Q), where Q is output. Show that average...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1 Economies of Scale Consider the total cost function (TC): TC(q) = 100+ 40 + 492...

    1 Economies of Scale Consider the total cost function (TC): TC(q) = 100+ 40 + 492 where q is output. 1.1 (10 points) Obtain the index of the extent of scale economies S = MCQ, where AC is average cost and MC is marginal cost. What is the value of this index when q = 2? Provide an intuitive interpretation for this number. 1.2 (10 points) Is there any range of production characterized by scale economies? At what production level...

  • Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2,...

    Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2, The firm faces a market price p = 50. (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q. (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q. (c) For what value of output is ATC minimized? (d) Find the profit maximizing level of output q...

  • 2. The cost function for your firm's product has been estimated as: TC = 30.25 +...

    2. The cost function for your firm's product has been estimated as: TC = 30.25 + 300 +0.25Q?, where TC is measured in dollars, and Q is output, where TC is measured in dollars, and Q is output. Labor is the only variable input. The wage is $120 ATC= AFC =- AVC= MC - Minimum ATC is $ The marginal product of labor al minimum ATC is Find AVC and AP for an output level of 14. AVC = $_...

  • Consider the cost function C(Q) = 60Q – 12Q2 + Q3. a.   Sketch the total cost,...

    Consider the cost function C(Q) = 60Q – 12Q2 + Q3. a.   Sketch the total cost, the total variable cost, and the fixed cost for 0-12 units of output. b.   Find expressions for the ATC, AVC, AFC, and MC curves, and sketch the curves on a single graph, making sure the curves are correctly related to each other. At what output level does ATC reaches its minimum? c.   What can you say about the shape of the marginal product of...

  • Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q...

    Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q. (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q. (c) For what value of output is ATC minimized?

  • Given the total cost function for a firm is (Q = output and TC = total...

    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

  • Consider the following cost function: TC(Q)=(2Q^3)-(4Q^2)+6Q+3. What is the total variable cost function? What are the...

    Consider the following cost function: TC(Q)=(2Q^3)-(4Q^2)+6Q+3. What is the total variable cost function? What are the total fixed costs? What is the average variable cost function? What is the average fixed cost function? What is the average total cost function? What is the marginal cost function? For what level of output is average variable cost a minimum? What is the relationship between average and marginal cost?

  • Suppose a firm's cost function is C (q) = 2q2 + 8. The output q that...

    Suppose a firm's cost function is C (q) = 2q2 + 8. The output q that minimizes average total cost is: (Hint: At the minimum of the ATC, ATC is equal to MC) a)4 b) 2 c) 0 d) 8

  • 1. Consider the following hypothetical example Output Price P Total Fixed Cost TFC Total Cost TC...

    1. Consider the following hypothetical example Output Price P Total Fixed Cost TFC Total Cost TC Total Variable Cost TVC Average Total Cost ATC Marginal Cost MC 0 100 100 90 1 2 130 158 80 3 183 70 60 4 5 6 7 50 40 30 208 253 308 368 8 20 468 A. Complete the missing figures B. Plot ATC C. Plot AVC D. Plot MC

  • Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q...

    Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q 2 The firm faces a market price p = 50. (d) Find the profit-maximizing level of output q^*. At this level of output, what are TR, TC, ATC, and π? (e) Graph the ATC, AVC, MC, and MR curves in a single graph, and indicate the profit-maximizing level of output. If there are profits, shade the region corresponding to profit and label it.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT