The cost of the production of a commodity is S12 less per unit at point A than it is at point B, and the distance between A & B is 100 km. Assuming the route of delivery of the commodity is along a straight line, and that the delivery cost is 20 cents per unit per kilometer, find the curve at any point of which the commodity can be supplied from either A or B at the same total cost.
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…
A: Given: Production processes with marginal cost curves: MC1 = 0.25x and MC2 = 6+0.1y Total Output…
Q: average total cost of using 81 units of capital and 9 units of labor is:
A: The average total cost(ATC) is the per-unit total cost(TC) for production. This is TC divided by the…
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…
A: If a firm wants to minimize the cost of production when it distributes its total production between…
Q: You are the manager of a firm that specializes in small single-board widgets. Your goal is to…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: The daily cost to manufacture generic trinkets for gullible tourists is given by the cost function…
A: The functional connection between cost and output is referred to as the cost function. It…
Q: A firm is faced with two production processes, with ATC1=16/Q1+6Q1 and ATC2=240/Q2+2Q2. a. What is…
A: Given:ATC1=16/Q1+6Q1ATC2=240/Q2+2Q2We know,…
Q: Q.No.3. (a) What is the input use level for total value product maximization for the following…
A: Total Product we can define TP as the total amount of final goods produced by an organization using…
Q: The change in the optimal capital-labor ration if both inputs are perfect complements in production…
A: Perfect complements are those products, items, or inputs that are always used together and also are…
Q: Which of the following statements is true? (a) If a firm is experiencing decreasing returns, it…
A: Production Possibility curve refers to graphical representation that shows all the combination of 2…
Q: Suppose that production for good X is characterized by the following production function, Q =…
A: In the short run, all factor of production are not variable. The at least one factor is fixed and…
Q: Suppose the production is characterized by the function Q(K,L) = 50K05L05. The price of labor is $5…
A: Cost is minimized at the bundle of inputs where marginal rate of technical substitution is equal to…
Q: If the average cost function of a good is 13 AC = 2Q + 6 + 6 Find an expression for MC. If the…
A: MC, marginal cost is the additional cost incurred with an additional unit of output produced.
Q: C(Q) = 100 + 20Q + 15Q2 + 10Q3 Based on the cost function, determine: The fixed cost of…
A: Total cost = Fixed cost + Variable cost Fixed cost is that which are not depend on level of output.…
Q: Determine the optimal amount of raw materials to be used in this production process.
A: Here, It takes 5 kg to create one output so, MC=5 MR= -Q2+52Q-576
Q: The price-demand equation and the cost function for the production of table saws are given,…
A: (Since there are many subparts in the question, we are going to answer the first three subparts…
Q: The cost, in billions of dollars, of airing æ five-second hologram actic Chess game can be…
A: ‘Average cost’: ‘Average cost’ is the ‘total cost’ divided by the number of units of the good. It…
Q: A single product firm intends to produce 20 units of output as cheaply as possible. By using K units…
A: Q = (K)0.5 + L Total cost (TC) = wL + rK = 20L + K, as the cost of labor is 20 and the cost of…
Q: Given the production function f (L K) = L2 / 3. K1 / 3, where L is the working hours and K is the…
A: Cost is minimised at a point where marginal rate of technical substitution is equal to the price of…
Q: Determine the cost minimizing combination of labor and capital if the firm decides to adopt…
A: The Cobb-Douglas production function is an economic production function with two inputs, labour (L)…
Q: The change in the optimal capital-labor ration if both inputs are perfect complements in production…
A: If both inputs are perfect complementary good in productions, it means that both inputs are used in…
Q: For less than $300, you can get a high-quality colour laser printer with four toner cartridges…
A: Printer cost are so low than its ink . Because companies sell their printer at very low price or…
Q: The total cost of producing q items is given by the formula C(q) = -q^3 + 40q^2 +1000, e.g. C(10)…
A: Total cost- It is the sum of all types of costs involved in the production.
Q: For firm A, is the following an internal or external economy of scale? Firm A benefits from a pool…
A: Economies of scale- It is the cost advantage experienced by companies when production is efficient…
Q: "he cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their…
A: The answer to the question are as follows :
Q: 6. Optimize the Cobb-Douglas production function given the following parameters. The maximum about…
A: Answer Given : q= K0.4 L0.6 LPl + KPk = C Where C= Cost Lagrange function: La= q-a(Lpl+KPk-C)…
Q: An enterprising entrepreneur purchases two factories to produce goods.Each factory produces…
A: a production function gives the technological relation between quantities of physical inputs and…
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…
A:
Q: The cost minimizing equilibrium condition is a. MPL/PL = MPK/PK. b. PL = PK. c. MPL = MPK.
A: Marginal rate of technical substitution refers to the rate at which the firm can replace inputs to…
Q: The total cost and the total revenue (in dollars) for the production and sale of x ski jackets are…
A: Total cost refers to the sum of fixed cost and variable cost. Total Revenue refer to the total…
Q: The marginal cost for a company to produce q items is given by MC(q)=0.004q2−0.6q+620. The…
A: Answer: Given, Marginal cost function: MCq=0.004q2-0.6q+620 Fixed cost= $8500 To find the marginal…
Q: You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs…
A: TC1(Q1) = 0.02083 *Q12 + 0.2 (Q1) - 20 MC1(Q1) = 0.04167*Q1 + 0.2 TC2(Q2) = 0.0083*(Q2)2 +…
Q: 6. Optimize the Cobb-Douglas production function given the following parameters. The maximum 12 and…
A: Here taking derivatives with the function given with respect to L & K: With respect to…
Q: Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 8L0.' K0.9 %3D…
A: The cost is the amount that is incurred for using the factors of production to produce goods and…
Q: Given the input-output matrix below, find the output matrix if final demand changes to 600 for…
A: The Leontief’s input-output model analyses how different industries of the economy are…
Q: The activity driver for the packing activity is the number of packing hours. Product A uses 50…
A: The consumption ratio is calculated by dividing the value of a product by the sum of the value of…
Q: Consider the produetion function: f(K,L) = K*L%. Let w and r denote the price of labor and capital.…
A: Production function = K2/3.L1/3 MPk = 2/3K-1/3.L1/3 MPL = 1/3K2/3.L-2/3 MRTS = MPL/MPK At cost…
Q: Suppose that production for good X is characterized by the following production function, Q =…
A: The fixed cost refers to the cost that does not change with change in the level of output. While…
Q: The Cobb-Douglas production function for a particular product is N(x.y) = 60x"y4, where x is the…
A: Production function: N (x,y) = 60x0.6y0.4 Wage per labor (w) = $40 Rent per capital (r) = $120…
Q: The price-demand equation and the cost function for the production of table saws are given,…
A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub-parts per…
Q: Suppose that the dollar cost of producing q appliances is c(q) = 1500 + 140q-0.3q. (a) Find the…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: The total cost C of making x units of a commodity is given by C = 0.005(x)3 + 0.45(x)2 + 12.75(x).…
A: Given: Cost: C = 0.005(x)3 + 0.45(x)2 + 12.75(x) Sales price per unit=$36.75 Profit: P = 36.75(x) -…
Q: PROBLEM #3 An auto parts manufacturer uses a production process for one of its parts that has a…
A:
Q: Electricity is sold for $0.12 per kilowatt-hour (kWh) for the first 10,000 units each month and…
A: Given Information: For the first 10,000 units - $0.12 per kWh For remaining units - $0.09 per kWh A…
Q: Water is produced and sold by the government. Demand for water is represented by the linear…
A:
Step by step
Solved in 2 steps with 1 images
- Distinguish between technical efficiency and economic efficiencyRoad Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) b. consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) A.Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. B.Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…
- A firm produces two different kinds, A and B, of a commodity. The daily cost of producingx units of A and y units of B isC(x, y) = 2x2 − 4xy + 4y2 − 40x − 20y + 514Suppose that the firm sells all its output at a price per unit of $24 for A and $12 for B. Findthe daily production levels x and y that maximize profit. (Be sure to show your first andsecond order conditions.)1. The total cost of producing a quantity q is C(q). The average cost a(q) is given in figure below. The following rule is used by economists to determine the marginal cost C'(q0), for any qo: Construct the tangent line ti to a(q) at qo. Let t, be the line with the same vertical intercept as t, but with twice the slope of t, . Then C'(q0), is the vertical distance shown in figure below. Explain why this rule works. $/unit a(q) t2 t1 C'(qo)A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…
- (a) If lemons cost $1 per pound, the wage rate is $1 per hour, and theprice of lemonade is p, what is his marginal cost function? (b) What is his supply function? (c) If lemons cost $4 per pound, the wage rate is $9 per hour, and theprice of lemonade is p, explain in detail how these changes would affect theoriginal supply function in part (b)? ONLY ANSWER PART B AND C.The price of oil is currently over $80 per barrel and has been as high as $90 per barrel after Saudi Arabia and a couple of oter OPEC countries reduced output this year. The demand for oil is expected to increase by 1 million barely per day over the next year according to the International Energy Agency but OPEC+ has been unclear about its intentions of increasing oil supplies. a. If OPEC+ increases its production by million barrels per day, we can unambiguously say that the equilibrium price will fall, and the equilibrium quantity will rise.What is the maximum weekly profit? What is the wholesale price per sleeping bag that should be charged to realize the maximum weekly profit?