depict a ATC curve, one where the firm has negative profits (π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine whether to shutdown or keep producing at Q = 1000.
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depict a
(π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine
whether to shutdown or keep producing at Q = 1000.
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- a) Suppose in the short-run, the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make? Using an isoprofit line, as well as the production function, draw a diagram of your solution and label all the intercept and slopes b) In the long-run, how many mixers should she use? How many machines? How many baklavas will she make? c) Suppose that the government decides to provide a $1 subsidy per mixer. What is the profit-maximizing amount of each input to use now?Sergio Lopez is a publisher of Latin American poetry. His fixed cost is $525, and the cost to produce each individual copy of his book is $3.50. Currently, Sergio is selling these books for $6 each. So far this year, he has produced x a. Write a linear cost function C for Sergio’s book production, in terms of x. b. Find the linear revenue function R for selling x copies of the book. Remember that P(x) = (price)x. c. Use and 1b. to determine the profit function P for selling x books. Write the formula in simplified form. d.Use your answer for 1c to determine the profit, in dollars, for selling 300 books.In the long run, you are given the following: The total revenue curve is TR= -4Q^2 + 28Q +235. The average variable cost curve is AVC = 4Q-36+(100/Q). At what level of output should the firm operate in order to maximize profits?
- a) suppose in the short run the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make? b) using an isoprofit line, as well as the production function, draw a diagram of your solution from a). Carefully label all the slopes and intercepts. c) In the long run, how many mixers should she use? How many machines? How many baklavas will she make?Let's consider a company that produces a good Z, in a perfectly competitive market. The expression for the total cost of this undertaking is as follows: C( q) = 72 + 2q2 Graph the marginal cost, average cost, and average variable cost curves of this company. Your chart should be accurate. Also include the break - even point (SR) and closing point (SF).A Chinese high technology manufacturing firm has a production function of 0.80 0.20 q=16L (based on Zhang, et al., 2012). It faces prices of w=$8 and r= $2. What are its short-run average variable and marginal cost curves? Let K be fixed in the short run. The firm's short-run average variable cost curve, AVC, as a function of K and q is AVC=$ (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcute. E.g., a superscript can be created with the character.) Write AVC and MC functions
- Suppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of $900. If the firm produces and sells 151 units, its total revenue is $1,005, and its total costs are $950. Should the firm produce and sell the extra unit? Group of answer choices yes, since marginal profit is positive yes, since profits are positive no, since marginal profit is negative no, since marginal profit is positive You have recently learned that the company where you work is being sold for $1,000,000. The company's income statement indicates next year's profits of $30,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and the interest rate will remain constant at 7%, at what (constant) rate does the owner believe that profits will grow? (Hint: the price the owner was willing to pay is the present value of the firm's future cash flows) Group of answer choices 6% 5% 4% 4.5%If a firm's fixed cost decreases. The firm's should take advantage of this drop by producing more True FalseThe marginal cost curve of a firm is MC = 6y + y2 . Total variable costs to produce 10 units of output are
- Consider a total cost function TC(Q) = 90 + 40Q +1.5Q^2 for a firm in a competitive market. In this question, you will derive some cost functions and curves. And you are expected to plot them (can be done online or hand drawn). B) Derive MC and ATC. Then draw MC and ATC together and examine if MC passes through ATC at the minimum of ATC. C) Compute the fixed cost FC. D) Based on the curves that you plot in Part B, comment on whether this firm will produce anything when the market price is $50. If not, why? If so, how many outputs Q would a profit-maximizing firm produce (roughly)? What if the market price is $85? E) Based on your answer in Part C, what is the lowest variable profit the firm must be able to make in order for the firm to consider entering the market? Why?Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000g- 200g +q' where Q is measured as thousands of feet of piping. The long-run marginal cost of Peter's pipes is given as LMC = 20,000– 400q+3q² Over what range of output does Peter's Pipers experience economies of scale, and over what range of output does Peter's Pipers experience diseconomies of scale?Q1. A firm's total cost function is c(y) = y² + (a + ß)y + 100ß. p = $50. Find the best output level, y*.
