Answered: 6. Suppose a firm's total cost is given…

Business

Economics

6. Suppose a firm's total cost is given by TC = 200+ 2Q- .006Q² +.000020³ (a) What is the firm's fixed cost?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 10QP

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: A firm's total cost curve is TC-Q3-20Q2 +45Q+ 200. Its marginal cost is 3Q² - 40Q+45 Identify the…

A: Total cost(TC) refers to the overall expense incurred by a firm in producing a certain quantity of…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: 2. The weekly marginal cost of producing x ice cream makers is 28+ 0.05x dollars per ice cream…

A: Cost function can be written as follows:

Q: A firm’s cost function is C(q) = 100q − q^2+1/5q^3+450 (a) Derive the marginal cost, the average…

A: Cost is the expenditure incurred on the production of goods and services.

Q: ort-run cost curves for display (LCD) screens for cell phones. s of producing 300 LCD screens? $999…

A: Fixed cost is the cost that remains same at all levels of output. Variable cost refers to the cost…

Q: Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of…

A: Fixed cost is the cost of production that doesn't vary with the level of production and exits even…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

Q: What is the average cost for the firm from the table below

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: g) What will be the firm’s total fixed costs?

A: Fixed cost is that component of total cost that is independent of the output level.

Q: Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: $/Q MC $30 ATC AVC 20 D 10 MR 50 100| 150 200 117 222

A: Given:ATC=$20Quantity=117

Q: A company's cost function is given as: TC = 25+ 30Q + 0.2Q² What is the equation for the company's…

A: Variable cost refers to the cost which changes with change in the level of output. The fixed cost…

Q: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…

A: Cost Function = C = 4000 - 7Q + 8Q2 where Q = 5

Q: 1. If the average cost of a plant to produce a "q" unit is explained by the functions below this: C…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Q: A firm's cost function is C(x) = 300lnx, determine and interpret the marginal cost of the firm when…

A: Given information: C(x) = 300 ln(x) ----------> Cost function. Where 'x' is the output…

Q: Using the figure above, what is the total cost for the firm?

A: Total cost is the summation of total fixed cost and total variable cost. The average total cost to…

Q: 14. The research department of Acme, Inc. has determined the marginal cost function for one…

A: The marginal cost of production refers to the incremental cost incurred in the production of an…

Q: 10:29 A bartleby.com ce ago A company manufactures small refrigerators. The total cost to…

Q: (a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing…

A: Answer: Given values: To find: Marginal cost function and marginal cost (at 60,000) Average cost…

Q: The following graph shows the cost and revenue curves for J'Aime Bakery, which sells croissants in a…

A: A perfectly competitive market is a market structure that consists of many small firms and many…

Q: Q1 It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake. A cupcake is sold…

A: Since posted multiple sub-part, we will answer first three sub-parts.

Q: Complete the third column of the following table by calculating the marginal cost per dozen pizzas…

A: A change in the total cost of producing various quantities of a product is divided by a change in…

Q: A firm has this cost function: C= 1000-4Q+5Q2. The firm is currently producing 3 units of its…

A: Given cost function: C = 1000 - 4Q + 5Q2 and the firm is currently producing 3 units of its product.

Q: 5. Suppose a firm's cost function is given as C = 6q+10q2-4142+30 and it must be that 91 +92 = 34.…

A: Cost is minimized where MC = AC MC is the marginal cost and is the cost of producing an additional…

Q: The "Sad Student" Company finds that it costs a total of C(q) = 9720 +500q – 1.5q² +0.005q Dollars…

A: The total cost function is the minimum total cost borne by a firm for any given level of output (q)…

Question

6. Suppose a firm's total cost is given by
TC=200+2Q-006Q² +.000020³
(a) What is the firm's fixed cost?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define fixed cost

VIEW

Step 2: Calculate fixed cost

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How does fixed cost affect marginal cost? Why is this relationship important?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Are fixed costs also sunk costs? Explain.
7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its product. Calculate these a) Total cost b) Average fixed cost c) Average variable cost d) Marginal cost (You must clearly label and type each answer in eCourses, and show your calculations to receive any credit for your answers.)
g) What will be the firm’s total fixed costs?
Q1 It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake. A cupcake is sold for $4.90 each. (1) Make a table showing the cost of producing 20,40,60,80 and 100 cupcakes. (ii) Make a table showing the revenue from selling 20,40,60,80 and 100 cupcakes. (iii) Write an algebraic expression representing the cost C as a function of the number of cupcakes x that are produced. (iv) Write an algebraic expression representing the revenue R as a function of the number of cupcakes x sold. (v) Graph both functions on the same coordinate axes. (vi) From your graph find coordinatae at which cost equals revenue. (vii) Using your graph, determine how many cupcakes need to be made to produce revenue of at least $1,029. How much profit is made for this number of cupcakes?
What is this firm’s fixed cost??
(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.