3.(a)Given the total cost function C=2Q³ - 3Q² + 400Q + 5000Calculate the average variable cost, average fixed cost and marginal cost functions.Show them graphically.(b)Prove that whenever the marginal cost function is below the average cost function,the average cost function is decreasing; and when the MC function is above the ACfunction, the AC function is increasing.

Given Total cost function: C=2Q3-3Q2+400Q+5000 ....(1) The formula for average variable…

Answered: 3. (a) Given the total cost function C…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 11MC

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1. For each of the cost functions given below, do the following things: C(T) = = 10 + 2T. C(T) = T0.8 (a) Draw the graph for C(T), with T on the horizontal axis. Explicitly the values for the intercepts. (b) Derive AC and MC respectively, and draw their curves. (c) Determine whether the cost function exhibits IRTS or DRTS or CRTS.
Consider the following total cost function: where represents output and are constants. What can we conclude? (a) The firm experiences rising average fixed costs, but falling average variable costs. (b) The firm experiences falling average fixed costs, but rising average variable costs. (c) The firm experiences falling average fixed costs and falling average variable costs. (d) The firm experiences rising average fixed costs and rising average variable costs
Practice V 3 #7 Can you show me how to do this
please analyze the behavior of cost function and interpret the constant term in the expression of C(q)
Assume that it costs a company approximately C(x) = 400,000 + 160x + 0.003x² dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) (10,000) = = per smartphone. The exact cost of producing the 10,001st smartphone is $ $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is ---Select--- than the average cost from (b). This means that the average cost is ---Select--- Thus, there is a difference of $ at a production level of 10,000 smartphones.
Suppose that the cost, in dollars, for a company to produce x pairs of a new line of jeans is C(x)=7000+6x+0.01x^2+0.0002x^3. (a) Find the marginal cost function. (b) Find the marginal cost at x=100 (c) Find the cost at x=100
Suppose that the cost function of q is given by: C(q)=16+4q+q^2 (a) Find the fixed and variable cost. (b) Find the average cost and marginal cost. (c) Draw the relationship between MC and AC. Prove that they always intersect at the minimum. (Hint: compute the derivative of AC with respect to q and set it equal to zero. Then use this equation to show that MC=AC)
The total cost (in dollars) of producing x food processors is C(x) = 1600 + 40x-0.1x². (A) Find the exact cost of producing the 61st food processor. (B) Use the marginal cost to approximate the cost of producing the 61st food processor. CHEO (A) The exact cost of producing the 61st food processor is $ (B) Using the marginal cost, the approximate cost of producing the 61st food processor is $
Consider the following cost function. a. Find the average cost and marginal cost functions. b. Determine the average and marginal cost when x = a. c. Interpret the values obtained in part (b). C(x) = 0.04x³ +0.4x² + 30x+130, 0≤x≤ 1500, a = 1000 a. The average cost function is C(x)=
(a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing when x = 60,000. | per game system Compare this with the exact cost of producing the 60,001st game system. The cost is increasing at the rate of $ | game system is $| the estimated cost of producing the 60,001st game system found using the marginal cost function. | per game system. The exact cost of producing the 60,001st J. The actual cost of producing the 60,001st game system is --Select-- (b) Find the average cost function C(x) and the average cost to produce the first 60,000 game systems. (Round your answer to the nearest cent.) C(x) C(60,000) - $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 60,000 game systems.
Show that the r/ship between production function and cost function.
What are the shapes of the total cost functions for undergraduates and graduates? (You could sketch them using what you know about marginal and average costs.) Plot them on a single chart using the numbers in the total cost column

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