plene has a production function 4x1 + x2. If the factor prices are £12 for factor 1 and £2 for actor 2, how much will it cost her to produce 30 units of output? £795 £60 £90 £1,500 £75
Q: The manager of Don Teeta Company Limited hires labour (L) and rents capital equipment (K) in a very…
A: The wage rate of labor (w) = GH¢2 per hour Capital is rented (r) = GH¢5 per hour, The unit price of…
Q: a) Are the estimates ˆa, ˆb, and cˆ statistically significant at the 2 percent level of…
A: The simple regression equation of AVC of Argus Corporation is, AVC = a + bQ + c*Q^2 (a) The…
Q: In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The…
A: The highest variable cost for break even on this project can be calculated as follows.
Q: The manufacturer produces certain items at a labor cost per unit of 315, material cost per unit is P…
A: The breakeven point is the level of production at which the costs of production equal the revenues…
Q: A car part manufacturer has been asked to quote for 40 units of a new part. The following data are…
A: Learning curves uses the basis that the people and organizations get more efficient and productive…
Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…
A: Transfer price is defined as a price at which related parties transact with each other such as…
Q: The cost of producing a certain commodity of P45.00 per unit for labor and material cost and P15.00…
A: Here, given information is: Labor and material cost (variable cost)=P45.00 per unit Other variable…
Q: Phillips Industries manufactures a certain product that can be sold directly to retail outlets or to…
A: Total RevenueTR=Price×Quantity Profit = TR-TC Given, TC=10+8Q1+Q2 Total Revenue from the Retail…
Q: You are a manager of a major manufacturer of office furniture. You recently hired an economist to…
A:
Q: You are the operations manager for a production company. You are given the technical rate of…
A: MRTS = change in capital ÷ change in labor
Q: The revenue function R(x) and the cost function C(x) for a particular product are given. These…
A: We have been given that : R(X) = 200x - x2 C(X) = 5x + 7250
Q: Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many ton…
A: Each firm in any organization is driven by profit motive. Profit is nothing but the difference…
Q: The output (Q) of a production process is a function of two inputs (L and K) and K is given by the…
A: Answer: Given, Production function: Q=0.50LK-0.10L2-0.05K2 Per unit price of L PL=$20Per unit price…
Q: A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per…
A: Product 1: P1=155q2+26q22-q12q2 Product 2: P2=295q1+18q12-q22q1 Total Cost: C=100q1q2 Relative…
Q: 250 = 10K0.5L0.5
A:
Q: A machine that produces a certain piece must be turned off by the operator after each piece is…
A: Given:- Machine produces=50,000 pieces Operator earns=$4 Break require servicing=After 476 hours…
Q: The total cost of manufacturing 360 units of a product is P6,620 and if 450 units are manufactured,…
A: In the question above, it is given that : Total cost of manufacturing 360 units of a product is…
Q: a). Given a budget constraint of $108 when Pk=3 and P=4, the generalize Cobb-Douglas production…
A: The method of Lagrange multipliers is a process of mathematical optimization with which the local…
Q: An oil company is considering changing the size of a small pump that currently is in operation in an…
A:
Q: Consider the long run total cost function LRTC = 30*Q - .006*Q2 + .00001*Q3. What is Q when LRAC…
A: The cost function that represents the total cost of production for all goods produced is known as…
Q: A company has fixed costs of $540 and can produce 20 items for a total cost of $1,380. The company…
A: Profit is the difference between total revenue and total cost. Total cost is the expenditure that is…
Q: You work for an IT company which recently developed a software package for a hospital, and multiple…
A: A two part tariff structure is a strategy of price discrimination where the of a good is decomposed…
Q: Average cost with the $300 tax is minimized at a quantity of q = units. (Enter your response rounded…
A: *Answer:
Q: The revenue function R(x) and the cost function C(x) for a particular product are given. These…
A: The total revenue function shows the revenue a firm is able to generate when it sells different…
Q: In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The…
A: Break-even Point: It refers to a point at which firm earns only normal profit so, total revenue is…
Q: . A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK…
A: When the ratio of labour and capital prices equals the marginal rate of technical substitution of…
Q: The technical rate of substitution between factors x2 and x1 is −4. If you desire to produce the…
A: Answer to the question is as follows
Q: as an assistant coach on the university swim team and earn $14 per hour. One day, you decide to skip…
A: *Answer:
Q: A Iqbal production function takes the form: Q = min [5L, 6K]. What are the optimum values for L and…
A: The production function is the function of the inputs which would result in the maximum output that…
Q: Given the cost function is TC = 6L + 3K Find out the optimal quantities of the two factor using…
A: Given that, TC = 6L + 3K L3/4 K1/4 = 13.46
Q: In order to produce a new product, a firm must lease equipment at a cost of $50,000 per year. The…
A: The highest variable cost for break even on this project can be calculated as follows.
Q: Canning companies sell one can at a price of 30 dinars, and the fixed costs are 400 thousand dinars…
A: Price = 30 fixed Cost = 400,000 Variable Cost = 10 Sales amount = 50,000
Q: A firm is selling two products-chairs and bar stools-each at $50 per unit. Chairs have a variable…
A: Total Cost = Total Variable Cost + Total Fixed Cost The Break-even point is the point where the firm…
Q: What is the critical point of the total cost function TC =-Q³ - 6Q2 -640Q ? %3D O A.Q = 10 О В. Q —…
A: The total cost function is given as follows: TC = 13Q3 - 6Q2 - 640Q Where, TC is total cost. Q is…
Q: A machine that produces a certain piece must be turned off by the operator after each piece is…
A: Without brake; Cycle time= (1min 45sec)+15sec =(60sec+45sec)+15sec…
Q: Given the following cost function: TC = 1500 + 15Q – 6Q2 + Q3 i. Determine the total fixed cost for…
A: Costs are the expenses that firms incur in the production activities. These are important for the…
Q: A local firm sells pairs of pants at P1,514 each. The cost of manufacturing and marketing them is…
A: Given information, Selling price per unit = P1,514 Variable cost per unit = P509 Fixed costs =…
Q: C=19,250+70x+x2, where C is measured in dollars. For both unctions, the input x is the number of…
A: A profit function is a mathematical relationship between a firm's total profit and output. It equals…
Q: Optimal Level of Variable Input Usage - Define the following • Total Revenue Product (TRP) = Q•P •…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Worldwide annual sales of a device in 2012–2013 were approximately q = −6p + 3,040 million units…
A: q = −6p + 3,040 manufacturing cost of $40
Q: Which of the following production functions will result in a non-linear long-run expansion paths? O…
A: Meaning of Production Function: The term production function refers to the situation under which a…
Q: The slope of TR and TC are each constant at 10 dollars and 5 dollars respectively and the total…
A: The Break-even point is that point where firms necessarily need to make a normal profit. According…
Q: Given the following cost function: TC = 1500 + 15Q – 6Q 2 + Q3 i. Determine the total fixed cost for…
A: Given, the cost function: TC = 1500+15Q-6Q2+Q3 i) Total fixed: The cost that does not depend on the…
Q: A company has a linear total cost function and has determined that over the next three months it can…
A: Linear Cost function refers to the cost function with degree 1. For eg: (aQ + c) is a linear cost…
Q: Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory…
A: Using Wright's cumulative average model: When 75% of learning curve in statistical process control…
Step by step
Solved in 2 steps
- Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is $100 $80 $1005 $800Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit variable cost of $20. Fixed costs totaled $250,000. In the coming year, Loessing expects price to decrease by ten percent. Neither unit variable cost nor fixed costs can be changed. If Loessing wants to maintain the same level of income, what will the new level of production need to be? Activate Windows Go to Settings to activate WindowSuppose that the production function takes the form X = min(10L, 5K) and that a competitive firm faces a wage rate of £60 per week and a weekly capital rental of £32. (a) How much must the firm spend to produce 100 units of output, and what is the average cost of production when X = 100? (b) What is the incremental cost of producing the 101st unit of output? (c) What happens to the cost of producing 100 units of output if the wage rate and the rental cost of capital rise by 25 per cent each? What happens to the average and marginal cost? (d) What happens to the cost of producing 100 units of output if the wage rate increases by £1, or if the cost of capital increases by £1?
- A manufacturing firm can sell x number of units of each product produced per month at a price of (24 – 0.03x) pesos. It costs P15 to make each unit of product. The fixed cost associated with producing and selling the product monthly is P 100,000. Determine: a. The TR, TC and Profit function. b. Production level to break-even c. Production level to maximize profit d. Maximum profit at this level.мса 13 Assuming no change in input prices, if the marginal productivity of labour falls as employment and output rise over the short run, the implication for production costs over the short run is: A the firm can achieve economies of scale in production B average total cost initially rises and then falls at higher production rates C I do not want to answer this question. D marginal cost must also be falling as output rises E average variable cost must be falling as output rises marginal cost must be rising as output risesA brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewery buy 10 units of regular beer and 17 units of light beer monthly. While setting up the brewery to produce the beers, the management decides to produce extra beer, beyond that needed to satisfy customers. The cost per unit of regular beer is $29,000 and the cost per unit of light beer is $35,000. Every unit of regular beer brings in $100,000 in revenue, while every unit of light beer brings in $400,000 in revenue. The brewery needs at least $12,000,000 in revenue, and has determined that the total demand will be at least 45 units of beer. Complete parts (a) and (b). (a) How much of each type of beer should be made so as to minimize total production costs? 20 units of regular beer and 25 units of light beer should be made, for a minimum total cost of $ 1455000 (Type integers or decimals.) (b) Suppose the minimum revenue is increased to $12,600,000. Use shadow costs to calculate the total…
- (2 ex Production function is flu, X2)=min (x,, 2-x) Dwhat are the conditional factor demand of y = 10 OVA the firm faces w, and w₂ as input prices, what is the cost function?3. In the short term, a company has the following cost function and product function. C(N) = = 10 000 +wN x = f(N) = 5N0.5 The company produces a product that is sold in the market for a price of NOK 1,000 per unit. The workforce has a price of NOK 500 per unit. a) How many units of labor will the company use? b) How many units of the product will the company produce? c) What will be the company's profit? d) Assume that the price of labor is unknown. What will be the company's demand curve for labor as a function of wages? e) Assume that the price of the product is unknown. What will be the company's supply curve for the product as a function of price?1) Consider a manufacturing firm that occupies two hectares of land. The firm produces 10 tons of output per day and sells its output at a price of $80 per ton. The firm does not engage in factor substitution as the price of land changes. Intraurban transportation is on trucks, with a unit cost of $12 per ton per km. The firm's nonland cost is $200 per day. The firm exports its output via circumferential highway (beltway). a) Draw the firm's bid rent curve for land for different distances from the beltway, from a distance of zero to five km. b) Compute the bid rent per hectare at the beltway and the slope of the bid rent curve.
- 9 = √KE C10K+5E K = 1 C(q) = 10 +5q² Market price (P) : = 30 = 30 = 10q q = 3 P = MC = Profit per unit π = = = R TC P q q զ π = (P - ATC)q - P 30 25 20 15- - ATC 10 0 p = 30 Cost Curves for C(q)=10+5q² MC Profit ATC AVC AFC о 3 4 5 6dien There are two factors in a production function y = x 113 x₂¹1³. The market price of each unit ofy is p=3, and the factor prices are w₁=1 and W₂=2 for x₁ and X₂ respectively. variable (a). Calculate your cost function as a function of y if X, and x₂ are both barible factors. (b). Now derive the functions of average and marginal cost and plot them against quantity (C). Solve for your optional output of y. Calculate the ratio of two factors (X₁/X₂) (d). In the short run the fixed factor is set at X₂=1. What is the new optimal output level now?Down the street from the dairy farm is a farmer with a pumpkin patch. Every season he produces pumpkins according to f(a,l) = 9a²/31!/3 where a is acreage and l is farm labor. He owns the land, but he does pay property tax T * a on his land. He can hire laborers at a wage rate of $12. He has already spent $200 on pumpkin seeds, and because of crop rotation, has exact acreage a he can use for pumpkins. What is the short run demand for labor?