Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?
Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 9WNG
Related questions
Question
Transcribed Image Text:Economist T. Yntema estimated the short-run total cost function of the United States
Steel Corporation in the 1930s to be as follows:
C=182.1+55.73Q
where C is total annual cost (in millions of dollars) and Q is millions of tons of steel
produced.
a.
b.
C.
d.
What was U.S. Steel's fixed costs?
If U.S. Steel produced 10 million tons of steel, what was its average
variable costs?
What was U.S. Steel's marginal costs?
If there were diminishing marginal returns to the variable inputs in the
production of steel, do you think that this equation provided a faithful
representation of U.S. Steel's short-run total cost function? Briefly explain.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
