1 c) The product function of a company is given by v? , where v is the number of units of the input factor. The company buys the input factor at a fixed price per unit given at 5 q=. Assume further that the company has fixed costs which in their entirety are sunk costs, and which is given by F = 100 . Show that the company's cost function is CO 20= y +100 .

1 c) The product function of a company is given by v? , where v is the number of units of the input factor. The company buys the input factor at a fixed price per unit given at 5 q=. Assume further that the company has fixed costs which in their entirety are sunk costs, and which is given by F = 100 . Show that the company's cost function is CO 20= y +100 .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A firm's total cost function is C=24x2−xy+8y2C=24x2−xy+8y2 and they are required to produce a combination of products totalling 128. In order words, the firm is subject to the constraint x+y=128x+y=128. What is the Lagrangian function?
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100? $20 $10 $50 $100
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100?
Please do it correctly!! I can't afford another wrong answ
Given the Cobb Douglas Production Function of F(K,L) = AKtalphaLt(1-alpha) and assume that A = 3, t = 1, w = 1, r = 1, alpha = .5 Find the short run minimum cost function when K is fixed Find the total cost Compare the short run cost function and long run function when q = 50
13) A firm's total cost function is TC = 0.5Q², where Q is the output level. What is the returns to scale of the firm's production function? A) Increasing returns to scale. B) Decreasing returns to scale. C) Constant returns to scale. D) Negative returns. E) None of the above.
Note: Enter your answer withtout the dollar sign ($) For the cost function TC= 520 + 10Q + 5Q2, determine the average fixed cost of producing 5 units of output.
Could you solve d,e,f ? Thank you
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL= $1 and PK = $1.What is the smallest total cost necessary to produce Q = 100?
In the short run, a firm which has production function f(L, M) = 4L1/2M1/2 must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, what is the short-run total cost of producing 48 units of output? Use Lagrange
An economist estimated that the cost function of a single-product firm isC(Q) = 100 + 20Q + 15 Q^2 + 10 Q^3Based on this information, determine:b. The variable cost of producing 10 units of output.
M1