4. (a) A micro-entrepreneur produces caps and hats for women. The output-cost data of thebusiness is reproduced below:OutputTotal Cost50890| 1009201501000| 20012602501470|30018503502410Using the above data estimate total cost equation and determine the average and marginalcost functions. Determine the output rate that will minimize average cost and the per-unitcost at that rate of output. Based on your findings at what price the firm would makepositive economic profit and what price it would earn negative economic profit.(b) Complete the following table. Using the following cost data how would you estimatethe short run supply curve. If there are 20 firms in the industry, what would be the industrysupply?VCTCAFCAVCATCMCOUTPUTFC5010102570450.67700.4105501351100.451551700.671801401801500.56

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4. (a) A micro-entrepreneur produces caps and hats for women. The output-cost data of the business is reproduced below: Output Total Cost 50 890 | 100 920 150 1000 | 200 1260 250 1470 | 300 1850 350 2410 Using the above data estimate total cost equation and determine the average and marginal cost functions. Determine the output rate that will minimize average cost and the per-unit

4. (a) A micro-entrepreneur produces caps and hats for women. The output-cost data of the business is reproduced below: Output Total Cost 50 890 | 100 920 150 1000 | 200 1260 250 1470 | 300 1850 350 2410 Using the above data estimate total cost equation and determine the average and marginal cost functions. Determine the output rate that will minimize average cost and the per-unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Output TFC TVC TC MC АТС A 25 25 ---- -- ---- -- B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the total cost at point E? 135 125 185 Cannot be determined
Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant) 1: When marginal cost is less than average variable cost, average variable cost is: 2 When marginal product is greater than average product, average variable cost is: 3: When marginal product is negative, total product is: 4: As total output increases average fixed cost is: 5: When marginal cost is at a minimum average product is:
Graph the average total cost curve by first using the point tool to plot points for the average total cost for Q-1, Q-5, and Q-14 and then using the curved-line tool to connect them. You may assume that all total costs for these quantities are multiples of $25. Use the formula ATC=for your calculations. To refer to the graphing tutorial for this question type, please click here P arh NO m 956 *** PAY TH ww 178 9 Q ** See Hint waka
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2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to determine the nature of their long-run cost structure. Some cost data has been collected for you and appears in the table below. Quantity of Generators Labor Costs Tools Cost $2 $4 $7 $8 $15 $24 $28 $41 $65 $80 Total Cost Long Run Average Cost $10 12 14 16 20 30 42 1 4 5 8 9 10 70 100 (a) Fill in the missing values in the table. (b) Graph the firm's long-run average cost curve below. (c) Determine the range of output levels over which there exists economies and diseconomies of scale, and mark these ranges on your graph.
Question 1 Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Quantity of Output Total Cost $12 1 $14 2 $18 $24 4 $32 5 $42 6 $54 7 $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm's profit-maximizing quantity of hats? Explain using marginal analysis. (c) Draw a correctly labeled graph showing the firm's demand and marginal cost curves, and show the profit-maximizing quantity of hats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm's profit-maximizing quantity of output in the short…
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
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The following is a cost schedule for A & E Manufacturing Company Ltd for product X. Quantity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 100 1 30 2 25 3 60 4 100 18 Required: Calculate the missing costs and complete the schedule. On one diagram, plot and label the Marginal Cost curve, the Average Fixed Cost curve, Average Variable Cost Curve and the Average Total Cost curve. Explain the relationship which exists between the Marginal Cost Curve and the Average Total Cost Curve. What accounts for the ‘U’ shape of the Average Total Cost Curve?
3. (a) Given the total cost function C = 2Q³ - 3Q² + 400Q + 5000 Calculate 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 AC function, the AC function is increasing.
Labor (workers) Output(units) Total fixed cost, TFC (dollars) Total variable cost, TVC (dollars) Total cost, TC (dollars) 0 0 20 0 20 1 4 20 25 45 2 9 20 50 70 3 13 20 75 95 4 16 20 100 120 5 18 20 125 145 Using the data in the above table, the average fixed cost of producing 16 units is $1.25 a unit. $1.54 a unit. $2.22 a unit. $1.11 a unit.
For each lettered space in the following table, determine the appropriate dollar amount.