5. Doug's Dogs (L). In the short run, the hot dog seller Doug's Dogs has a single variable input, laho- w = 50 The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: The total product of labor equation is: TPL = 5L½ Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. UC= L.W 30.L VC = 50L . TC =Uct FC TC = SOL+100o 50 L+1000 50 MC = mc= 60 dl b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 6LV2=Q Q=5 L"a Va SLASS G= as P=100 Q* = 25 TR=P.Q R= LU0 · a 5-2500 R*= S00 (R=2500 C= 50 (25)+1000 100 (SL 2) C* = 22SO TR= 500 L Y=TR-TC n*=_a50 laso+i000 S0OL"&-(50L+1600) SOOLM2-SOL-1006 TTR-TC 2 S00 -22s0 -280 ATT 250 -50 =0 5)2
5. Doug's Dogs (L). In the short run, the hot dog seller Doug's Dogs has a single variable input, laho- w = 50 The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: The total product of labor equation is: TPL = 5L½ Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. UC= L.W 30.L VC = 50L . TC =Uct FC TC = SOL+100o 50 L+1000 50 MC = mc= 60 dl b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 6LV2=Q Q=5 L"a Va SLASS G= as P=100 Q* = 25 TR=P.Q R= LU0 · a 5-2500 R*= S00 (R=2500 C= 50 (25)+1000 100 (SL 2) C* = 22SO TR= 500 L Y=TR-TC n*=_a50 laso+i000 S0OL"&-(50L+1600) SOOLM2-SOL-1006 TTR-TC 2 S00 -22s0 -280 ATT 250 -50 =0 5)2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. Doug's Dogs
In the short run, the hot dog seller Doug's Dogs has a single varlable input, labor.
w = 50
(L).
The price of the labor input is:
P = 100
Doug is a price-taker. The price per case of hot dogs is:
TPL = 5L½
The total product of labor equation is:
FC = 1000
Doug's total fixed costs are:
Find the equations of variable cost, total cost, and marginal cost.
a.
UC = LiW
50L
VC =
30.L
. TC =Uct FC
TC =
SOL+I00O
50 L+1000
50
MC =
mc= dTC_ 60
dl
%3D
b.
Find the profit-maximizing output, revenue, cost, and profit.
TPL= 5L2=Q
P=100
Q =5L"2
va
Q* =
25
TR=P.Q
作2s
R= LU0 25-2500 R*= _ so
C* = a2sO
100 (SL V2)
(R=2500
C= 50 (25)+1000
laso+1000
(2250%3DC
TR= 500 L
N = TR-TC
n*= _a50
soO L"& -(50L +1600)
ア-TR-TC
SOOL2-SOL -1000
2.
2 S00 -22so -280
250
ン
di
meact
Pockets and stay-pu
Prongs lor secure paper
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