Use Exhibit 2. Which of the following statements is (are) correct? (x) Q2 is the efficient amount of output because the firm is producing at its lowest ATC. (y) P3 x Q2 is the firm's lowest total cost that it can achieve for any amount of output. (z) The amount of output produced increases as the firm moves from Q2 to Q3 and as a result average fixed cost decreases even though the amount of fixed cost stays constant.
Q: Find the indifference curves corresponding to the following utility functions at different utility…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: 10. Calculate the deadweight loss caused by the subsidy in 8 and illustrate it in a graph. 11. Who…
A: A subsidy is a financial aid or assistance given by the government to individuals or organizations…
Q: Figure 18-1 OUTPUT (Units) 28 71 26 23 8 1 2 3 4 LABOR (Number of workers) 5 6 Refer to Figure 18-1.…
A: Total product is the total no. of output produced by all the labor hired. Marginal product is the…
Q: Price Level (base year-100) 882 SRAS, URAS, URAS, IRAS, SRAS, SRAS (C AD₂ AD, AD,
A: Notice that E (equilibrium) keeps shifting right as Aggregate Demand and Aggregate Supply shift.…
Q: Solve the EAC for a machine that costs 72,500 and has a 5 year life span, annual operating cash flow…
A: The EAC i.e. equivalent annual cost refers to an annual cost of operating, and owning an asset over…
Q: Daniel can spend no more than $40 at the fair. If admission into the fair is $10 and the rides cost…
A: Inequalities and equations are mathematical sentences formed to relate two expressions or variables…
Q: Use the information given in Upper Midwest National Bank's balance sheet to answer the following…
A: A leverage ratio is a financial ratio used to measure the extent to which a company's operations are…
Q: True/False Monopoly market can be created due to the cartel.
A: A market structure known as a monopoly occurs when there is only one seller or manufacturer of a…
Q: a) What should be the optimal monetary policy in the UK in the short and medium run and an how this…
A: The quantity, accessibility, and cost of money and credit in an economy are managed and controlled…
Q: What are the parameters of determining the development of an a nation? Explai
A: Development is the process of raising a person's standard of living and a society's overall…
Q: Refer to Table 12-1. Assume that the price of a weekend ski pass is $45 and that the price reflects…
A: Consumer surplus is the difference between the consumer's maximum willingness to pay for a product…
Q: In detail, explain how high inflation can lead to a recession in several ways.
A: High inflation refers to a sustained increase in the general price level of goods and services…
Q: QUESTION 3 When firms have multi-market contact, it is always optimal for cartel to set the cartel…
A: An economic scenario known as a monopoly occurs when there are no close substitutes available to…
Q: What would be the labor force participation rate if: a. The population = 200 million, the labor…
A: Note: “Since you have posted a question with multiple sub-parts, we will provide the solution only…
Q: QUESTION 7 Consider a market with two differentiated goods. Demand for good 1 is given by D₁ =…
A: The term "substitute goods" refers to commodities or services that can be used in lieu of one…
Q: 4. What type of game is this? Player 1 / Player 2 A B A 0,0 5,3 a. Cournot game b. Prisoner's…
A: The game theory explains the market where the player in the economy chooses to play the strategy…
Q: P 38/3 10.5=Po 10 8.5=Ps 0 5 7 2 10 CS Tax Rev PS How much is the tax revenue before tax? 6.5 8 STax…
A: Tax revenue is the product of tax per unit and quantity traded under tax. Consumer surplus is the…
Q: Distinguish between the Marginal Rate of Technical Substitution and Elasticity of Substitution in…
A: The marginal rate of technical substitution refers to the change in quantity of capital due to 1…
Q: Explain the absolute convergence and conditional convergence hypotheses in the Solow-Swan model…
A: The Solow-Swan model is a neoclassical growth model that explains the long-run economic growth of…
Q: factors that would cause variations between expected and actual work performances
A: There are various factors that affect the actual performances of employees as employees are humans…
Q: QUESTION 1 High private damage awards typically improve the functioning of cartel leniency…
A: Introduction A cartel is a formal agreement between a group of producers of a good or service to…
Q: You are a producer in a monopolistically competitive market of a good that is seen as being critical…
A: Monopolistic competition exists when many firms offer almost similar, but not exactly perfect,…
Q: Your friend Tim wants to open a checking account, but he's not sure how to do it. Explain the…
A: A checking account is a type of bank account that allows individuals to deposit money, withdraw…
Q: 3. There are two chicken fried steak restaurants operating in a small west Texas town: Cow Tipper…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: You are deciding whether to spend the evening at movie theater, staying home watching a show, or…
A: Opportunity cost is the value of next best alternative. It is the value of sacrifice made to make a…
Q: A study is designed to examine the relationship between employees' job satisfaction and the amount…
A: Cases: The cases in this study would be individual employees.
Q: 1. Use the data below to compute the various cost functions for each output level shown. Output 0 1…
A: Total cost is the cost of producing all the goods. Average cost is the cost of production per unit.…
Q: Consider the following planned aggregate expenditure function: AEp=1000+0.8Y 1. Calculate the…
A: Aggregate expenditure refers to the total amount of spending in an economy over a specified period.…
Q: Figure 21-4 Quantity of Y 60 20 3/4 3/1 1/4 1/3 Quantity of X Quantity of Y 15 Quantity of X Refer…
A: Relative price is the price of one good in terms another good. The relative price of good y in…
Q: Consider the case of a monopolist who has the ability to perfectly price discriminate by charging…
A: In the market, a monopoly is a situation where the price is set and controlled in the market by a…
Q: C. d. a. cost. b. PRICE 126 C. d. 84 72 40 C. d. 30 8. Refer to Figure above. A benevolent social…
A: The total surplus in a market is a computation of the aggregate well-being of all participants in a…
Q: Suppose that the price of a ride is $12. Then Angela buys 8 rides a month. Suppose her demand curve…
A: Consumer Surplus reflects the additional value received by a consumer on the consumption of a good,…
Q: Jon Cozart Incorporated divides the major functions of the organization into separate companies.…
A: Functional approach: The functional approach is a type of organizational structure that involve…
Q: Suppose $100 is invested today in a project that returns $330 in 6 years. Calculate the IRR of this…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: • From information about the computer firm XYZ activity as a monopoly on the market, give the…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: A rural college in the Midwest recently raised tuition by 12%. An economics professor at this…
A: The price elasticity of demand (ε) depicts the sensitivity or responsiveness of the quantity…
Q: For the cash flows shown in the diagram, find the future worth at end of year 10 at interest rate of…
A: Future worth (FW) is the value of a current asset at a future date relying on an assumed rate of…
Q: What happens to the market for "rescue" pets after a local food brings many more dogs & cats into…
A: The market for rescue pets operates according to the principles of supply and demand, which govern…
Q: Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher, Graw…
A: The aim of every company is to maximise profits. A company can achieve this objective by selling the…
Q: U = ln(C), where C is consumption. She makes $30,000 per year and enjoy jumping out of airplanes.…
A: utility function U = ln(C), where C is consumption. She makes $30,000 per year and enjoys jumping…
Q: Show graphs of perfect competition in 3 situations profitable price, price causing loss and shutdown…
A: Perfect competition is the market in which many sellers and buyers have perfect knowledge of the…
Q: The mobile phone landscape looks drastically different today than it did three decades ago. In 1983,…
A: DISCLAIMER B“Since you have asked multiple questions, we will solve the first three questions for…
Q: Based on the following figure, what is the output that a profit-maximizing monopolist would choose:…
A: Incase of a monopoly market structure, There exists a single seller. The profit is maximized where…
Q: Given the following table: OUTPUT 0 123456 Part 1: The TVC of producing 4 units of output is Number…
A: Total cost is the sum of fixed cost and variable cost. Fixed cost are the cost that doesn't change…
Q: 31. The market structure for a software product called Wrowserware is oligopoly (more precisely,…
A:
Q: Income tax is a type of ________ tax. Regressive Progressive
A: A tax called an income tax is imposed on a person's income, which includes earnings, salaries,…
Q: Suppose that under the Plan of Repayment one should pay off the debt in a number of equal…
A: Equated Monthly Installments are regular payments made by the borrower to the lender that include…
Q: he state of Florida sold a total of $36.1 million worth of lottery tickets at $1 each during the…
A: A state distributes lottery tickets to customers and announces prize money on some of the chosen…
Q: In the year 2020, aggregate demand and aggregate supply in the fictional country of Drooble are…
A: Given information In 2020, the price level will be 102. In 2021, if the aggregate demand is ADA,…
Q: A group of private investors borrowed $25 million to build 300 new luxury apartments near a large…
A: The table that is required to filled asks us to calculate the rental fee given the % of occupancy…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Question No. 6 A firm manufactures cars at its plant in Swindon. At a capacity of 100 cars per week it knows that it has an assembly cost of £5,000 per car. It needs to expand production and does a series of design and cost exercises. The results are summarized below. |TP(cars/week) 200 400 600 800 1,000 1,200 1,400 1,600 Ass. cost/car 3,000 2,500 2,300 2,200 2,000 2,400 2,800 4,000 (i) Plot the cost curve for the possible factory extensions. (ii) Is this a short run or long run cost curve? (iii) Explain why this curve is U shaped.C(x) = 0.01x-0.3x + 10x gives the cost, in thousands of dollars, to produce x thousand items. (a) Find a formula for the marginal cost. (b) Find C'(0). Give units. (c) Graph the marginal cost function. Use your graph to find the minimum marginal cost, the production level for which the marginal cost is the smallest. (d) For what value of x does the marginal cost return to C'(0)? (a) Find a formula for the marginal cost. c'(x) =D (b) Find C'(0). Give units. c'(0) = (c) Use the derivative of the marginal cost function to find the minimum marginal cost, the production level for which the marginal cost is the smallest. The minimum marginal cost of additional dollars per item produced occurs when thousand items are produced. d) Recall your answer to part b. For what value of x does the marginal cost return to C'(0)? Marginal cost returns to this value of C (x) when x = items are produced.It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake. A cupcake issold for $4.90 each.(i) Make a table showing the total cost and the revenue obtained from producing 20,40,60,80 and 100 cupcakes.(ii) Write algebraic expressions representing the cost C and the revenue R as functions of the number of cupcakes X produced and number of cupcakes X sold respectively.(iii) Graph both functions on the same coordinate axes and from your graph determine the cordinate at which cost equals revenue.
- Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? unitsA firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
- A firm's production function is given by Q = 40K0.8L0.2 Each unit of capital costs $40 and each unit of labour costs $80. (a) Find the maximum level of output if the total input costs are $400,000. (b) Estimate the increase in production if an addtional $5,000 is made available. (c) Show that the ratio of marginal product to price is the same for both inputs. (a) Maximum output Q = (Round to the nearest integer as needed.) (b) Increase in output is units (Round to the nearest unit as needed.) (c) The ratio of the marginal product of capital to price is (Round your answer to two decimal places.) The ratio of the marginal product of labour to price is (Round your answer to two decimal places.)1. Exercise 9.1 A study of 86 savings and loan associations in six northwestern states yielded the following cost function. 2.38 0.006153Q 0.000005359Q² 19.2X1 C + + (2.62) (2.84) (3.16) (3.50) where C = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q = output; measured by total assets ($ million) X1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Which of the variable(s) is (are) statistically significant in explaining variations in the average operating expense ratio? (Hint: t0.025,7€ 1.99 .) Check all that apply. X1 Q2 What type of average cost-output relationship is suggested by these statistical results? Quadratic Linear Cubic Based on these results, what can we conclude about the existence of economies or diseconomies of scale in savings and loan associations in…Assume that it costs a company approximately C(x) = 400,000 + 140x + 0.003x? dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. 400,000 – 0.000009 Use it to estimate how fast the cost is increasing when x = 10,000. 2$ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. -Select--- at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- than the average cost from (b). This means that the average cost is
- Assume that it costs a company approximately C(x) = 400,000 + 160x + 0.002x2 dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- v than the average cost from (b). This means that the average cost is ---Select--- v at a production level of 10,000 smartphones. Need Help? Watch ItOUTPUT TOTAL COST 40 49 2 57 3 64 4 70 5 77 6 85 The TVC of producing 4 units of output is : The AFC of producing 6 units of output is: : The marginal cost of producing the fifth unit of output is: : The ATC of producing 5 units of output is:Cost (thousands of $) The graph shown on the right represents the cost C (in thousands of dollars) of refining x gallons of gasoline per hour (in thousands). The vertical axis represents the cost, and the horizontal axis represents the number of gallons of gasoline refined. Cost of refining gasoline per hour 1000- 800- 600- 400- Answer the following questions below in parts (a) through (d). 200 O 100 200 300 400 500 600 700 800 Number of Gallorns (thousands) (a) What is the cost of refining 200 thousand gallons of gasoline per hour? thousand