Consider the following cost curve for a firm in a competitive industry where the market price equals $200. C = 9³ +49 + 750. What is the firm's marginal cost (MC)? MC = (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.)

Consider the following cost curve for a firm in a competitive industry where the market price equals $200. C = 9³ +49 + 750. What is the firm's marginal cost (MC)? MC = (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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The cost function of a UC Irvine donut shop is: C(q)=10+ 10q + q?, so the marginal cost function is: MC= 10+ 2q. In these equations, q is the output in terms of boxes of donuts. (a) What is the firm's average cost curve? (Note: just write the equation, no graph necessary) What is the firm's average variable cost curve? (Note: just write the equation, no graph (b) necessary) (c) If the price of a box of donuts is $20, what is the optimal output for this firm?
Month (m): 4 Day (d): 1 Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = m q2 + d = (30) For a cost function like yours, Marginal Cost (MC) = 2 m q . Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Average Total Cost = Cost (q)/q = Variable Cost = Average Fixed Cost = FC/q = Marginal Cost = 2 m q = Average Variable Cost = VC/q = (15) Fill in the table with your values from your cost function. q Total Cost AVC AFC ATC MC 0 0 0 -- -- -- 1 2 3 4 5 6
We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?
Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the company’s total cost of production at various production quantities. Fill in the remaining cells of the following table. On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments…
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Suppose a firm faces a cost function of C = 8 + 4q + q^2, so that its marginal cost is MC=4 + 2q. a) What is the firm's fixed cost. F? b) What is the formula for the firm's variable cost (VC), Average Cost (AC), and Average Variable Cost (AVC)? c) On a diagram, draw the AC, AVC, and MC curves.
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Using the figure above, what is the total cost for the firm?
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