#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
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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.
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