Please give us a detailed explanation with full steps. Thank you! 25. In a market, the inverse supply function is given by p° (a) = aq + b for somepositive constants a and b. The equilibrium price is 7 and the equilibriumquantity is 2. If the producer surplus is 4, thenA. a = 1, b = 5B. a = 2, b = 3C. a = 3, b=1D. a = 3, 6 = 2 19. Given K units of capital and L units of labor, a company produces Q =2K/2L/3 units of its product. Each unit of capital costs $3 and each unit oflabor costs $1. The selling price for the product is $3 per unit. What is themaximum profit?А. 4В. 6 С. 8D. 12

We have linear supply curve for the respective firm. And producer surplus is the area above the…

25. In a market, the inverse supply function is given by p°(q) = aq +b for some positive constants a and b. The equilibrium price is 7 and the equilibrium quantity is 2. If the producer surplus is 4, then A. a = 1, b = 5 B. a = 2, b = 3 C. a = 3, b=1 D. a = 3, b = 2

25. In a market, the inverse supply function is given by p°(q) = aq +b for some positive constants a and b. The equilibrium price is 7 and the equilibrium quantity is 2. If the producer surplus is 4, then A. a = 1, b = 5 B. a = 2, b = 3 C. a = 3, b=1 D. a = 3, b = 2

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

8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be: AVC= 18-0.3Q Total fixed cost is $60 and the forecasted price of the firm's product is $12. 79 a. What is the corresponding marginal cost function? b. At what output is AVC at its minimum? C. How much outputs should the firm produce? d. How much profit or loss will the firm earn?,
A31.The following table represents the cost of two firms in supplying ham and cheese. Firm Cost (Php) Morgana's Queso de Hamon Anne's Heavenly Hams 3.950,000 4.500,000 A government agency opens a call for bids after earmarking Php 44 million of its annual budget to look for a ham and cheese supplier for its annual Christmas party. Suppose that the bids must be submitted in increments of Php 300,000, and assuming that due to quality concerns, this agency will not accept bids below cost, but will try to maximize leftover money for other projects (e.g. teacher digital readiness, internet packages for less fortunate students), how much will the agency most likely have after the bidding process? Select one: a. Php 200,000 b. Php 400,000 c. None of the choices. d. Php o e. Php 100,000
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 20 units of output? Multiple Choice $15 О $10 ○ $34 О $9
5. A toy factory has an annual demand for 20,000 of tops. It cost $1.50 to store one top per year. It costs $500 for each production set-up for these tops and $3.50 to manufacture a single top. Find the total cost function. fM Total Cost of Production is: T(g) = : + gM +, where q is number of units per productionm run; k is cost of storing 2 one item per year; g is cost of manufacturing a single unit of the product; f is fixed set-up cost for a production run; M is total demand of units per year. Given Constants Total Cost Function Find the optimum number of tops per batch as well as the number of batches per year. optimum number of tops optimum number of batches Find the total cost for this optimum production schedule. Optimum Total Cost
Quantitative le 28 A small company makes only two products with the following production constraints representing two machines and their maximum availability: 2X +3Y < 18 2X + Y X 2 0; Y 20 If: X = units of the first product. Y = units of the second product. < 10 If the profit equation is Z P4X + P2Y, the maximum possible profit is P20. a. P21. b. P18. с. d. P24. (CMA, Adapted) 39. Variables that are important to the decision-making process but are out of the control of the decision maker, e.g., economic conditions, are considered to be exogenous variables. b. a. decision variables. performance criteria. d. с. constraints. (CMA, Adapted) 40. A large retail chain has 10 warehouses and 50 retail locations. The quantitative technique it would likely use to determine the minimum cost of moving its goods from the warehouses to the retail stores is a transportation model. b. a. Markov analysis. calculus-based optimization. d. с. a queuing model. 41. A transportation model is a special case…
See Hint Suppose you are the owner of a firm producing jelly beans. Your production costs are shown in the table. Jelly Bean Production Вохes Average cost per box 100 $0.95 101 $0.96 102 $0.97 $0.98 103 Initially, you produce 100 boxes of jelly beans per time period. Thena new customer calls and places an additional order for jelly beans, requiring you to increase your output to 101 boxes. She offers you $1.75 for the additional box. Should you produce it? Choose one: O. A Yes, because $1.75 is greater than average total cost, O B. No, because $1.75 is less than average total cost. O C. Yes, because $1.75 is greater than the marginal cost. O D. No, because $1.75 is less than the marginal cost. 9 E. We can't say because we don't know average variable cost.
Which of the following statements is true? Costs are always explicit, never implicit. Costs are always implicit, never explicit. George runs a stationery shop; he paid Frank $5,000 for the carpet he installed in the shop. The $5,000 for carpet is an implicit cost. An implicit cost is a cost that represents the value of resources used in production for which no actual monetary payment is made. None of the above а. b. с. d. е.
3. Assess which of the following is true and which is false.A firm’s total cost function is given by C = 1,000 +15Q. At an output of 200units:a) Total cost is €4,000 and marginal cost is €3,000.b) Total cost is €4,000 and fixed cost is €1,000.c) Total cost is €4,000 and marginal cost is €15.d) We do not have sufficient information to calculate either fixed cost or marginalcost.e) Total average cost is €20, average fixed cost is €5 and thus average variable costis €15.
A firm has a fixed production cost of $20,000 and a constant marginal cost of production of $1,000 per unit produced. What is the firm's total cost function? O A. TC = 20,000 + (1,000q). ОВ. ТС-1,000g. O C. TC = 20,000. OD. 20,000 + (1,000q) TC =-
If the average variable cost of producing 4 jeans at Jerry's factory is $60, and the fixed cost of the factory per hour is $200, what is the total cost when 4 jeans are produced? A $60 В $240 C $260 D $440
5. Suppose that labor cost P350.00 per day and rental price of capital cost is P2,000.00 per unit. The least-cost combination of capital and labor are as follows: Output Labor (L) Capital (K) 1,000 5 10 2,000 6 12 3,000 8 14 4,000 10 16 5,000 12 19 Compute the firms long run total cost of production for each amount of output the firm produced.
1.Suppose a chair manufacturer is producing in the short run (with its existing plant andequipment). The manufacturer has observed the following levels of production correspondingto different numbers of workers:Number of Workers Number ofChairs 1 10 2 18 3 24 4 28 5 30 6 28 7 25a. Calculate the marginal and average product of labor for this production function.b. Does this production function exhibit diminishing returns to labor? Explain.c. Explain intuitively what might cause the marginal product of labor to becomenegative.