#1 In the wake of the pandemic, chefs creatively used their talents and many designed high-end dinner kits for delivery through sites like Goldbelly, in lieu of unavailable traditional dine in services. You are given the following cost function for a chef considering producing different numbers of high-end meal boxes. Quantity (Q) in the cost equation is the quantity of high-end meal boxes created. *Please note in this problem, you will see much smaller numbers in answers simply to save us all from carrying 27 zeros, for instance." O Here is the cost function: C(Q) = 1000 + 100Q – 10Q2 +Q3 a. Write down an equation representing the fixed costs of producing high-end meal boxes. b. What is an example of a fixed cost of producing high-end meal boxes? c. Write down an equation representing the average fixed costs of producing high-end meal boxes. d. Write down an equation representing the variable costs of producing high-end meal boxes. e. Write down an equation representing the marginal costs of producing high-end meal boxes. f. If the firm is producing five high-end meal boxes what are the total variable costs?
#1 In the wake of the pandemic, chefs creatively used their talents and many designed high-end dinner kits for delivery through sites like Goldbelly, in lieu of unavailable traditional dine in services. You are given the following cost function for a chef considering producing different numbers of high-end meal boxes. Quantity (Q) in the cost equation is the quantity of high-end meal boxes created. *Please note in this problem, you will see much smaller numbers in answers simply to save us all from carrying 27 zeros, for instance." O Here is the cost function: C(Q) = 1000 + 100Q – 10Q2 +Q3 a. Write down an equation representing the fixed costs of producing high-end meal boxes. b. What is an example of a fixed cost of producing high-end meal boxes? c. Write down an equation representing the average fixed costs of producing high-end meal boxes. d. Write down an equation representing the variable costs of producing high-end meal boxes. e. Write down an equation representing the marginal costs of producing high-end meal boxes. f. If the firm is producing five high-end meal boxes what are the total variable costs?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Questions: D, E, F
![# Analyzing Cost Functions for High-End Meal Boxes
In the wake of the pandemic, chefs creatively used their talents and many designed high-end dinner kits for delivery through sites like Goldbelly, in lieu of unavailable traditional dine-in services. You are given the following cost function for a chef considering producing different numbers of high-end meal boxes. Quantity (Q) in the cost equation is the quantity of high-end meal boxes created. *Please note in this problem, you will see much smaller numbers in answers simply to save us all from carrying 27 zeros, for instance.* ☺
Here is the cost function:
\[ C(Q) = 1000 + 100Q - 10Q^2 + \frac{1}{2}Q^3 \]
**Questions:**
a. Write down an equation representing the fixed costs of producing high-end meal boxes.
b. What is an example of a fixed cost of producing high-end meal boxes?
c. Write down an equation representing the average fixed costs of producing high-end meal boxes.
d. Write down an equation representing the variable costs of producing high-end meal boxes.
e. Write down an equation representing the marginal costs of producing high-end meal boxes.
f. If the firm is producing five high-end meal boxes what are the total variable costs?
g. What is the marginal cost of producing the 10th high-end meal box?
h. Find the quantity of output that minimizes the average variable costs of producing high-end meal boxes. What is this quantity and what are average variable costs at this level of output? Remember, output can't be negative! Feel free to draw a graph here if it helps you think through the logic.
i. Compare the average variable costs at the level of output you found in part h and your answer to part g. Explain the relationship between these answers using your knowledge of economic theory in no more than two sentences.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0edb464d-d634-445c-87c6-932742a3b38a%2F3e256d72-b40d-47a1-8537-2539d8825af1%2Femoebjg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:# Analyzing Cost Functions for High-End Meal Boxes
In the wake of the pandemic, chefs creatively used their talents and many designed high-end dinner kits for delivery through sites like Goldbelly, in lieu of unavailable traditional dine-in services. You are given the following cost function for a chef considering producing different numbers of high-end meal boxes. Quantity (Q) in the cost equation is the quantity of high-end meal boxes created. *Please note in this problem, you will see much smaller numbers in answers simply to save us all from carrying 27 zeros, for instance.* ☺
Here is the cost function:
\[ C(Q) = 1000 + 100Q - 10Q^2 + \frac{1}{2}Q^3 \]
**Questions:**
a. Write down an equation representing the fixed costs of producing high-end meal boxes.
b. What is an example of a fixed cost of producing high-end meal boxes?
c. Write down an equation representing the average fixed costs of producing high-end meal boxes.
d. Write down an equation representing the variable costs of producing high-end meal boxes.
e. Write down an equation representing the marginal costs of producing high-end meal boxes.
f. If the firm is producing five high-end meal boxes what are the total variable costs?
g. What is the marginal cost of producing the 10th high-end meal box?
h. Find the quantity of output that minimizes the average variable costs of producing high-end meal boxes. What is this quantity and what are average variable costs at this level of output? Remember, output can't be negative! Feel free to draw a graph here if it helps you think through the logic.
i. Compare the average variable costs at the level of output you found in part h and your answer to part g. Explain the relationship between these answers using your knowledge of economic theory in no more than two sentences.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education