The cost (in dollars) of producing x units of a certain commodity is C(x) = 9,000 + 12x + 0.15x².(a) Find the average rate of change (in $ per unit) of C with respect to x when the production level is changed from x = 100 to the given value. (Round your answers to the nearest cent.)(i) X = 105$(ii) x = 101per unitper unit(b) Find the instantaneous rate of change (in $ per unit) of C with respect to x when x = 100. (This is called the marginal cost. Its significance will be explained in a future chapter.)per unit

Marginal cost addresses the incremental costs caused while producing extra units of a good or…

(a) Find the average rate of change (in $ per unit) of C with respect to x when the production level is changed from x= 100 to the given value. (Round your answers to the nearest cent. (1) X = 105 $ (ii) X = 101 $ per unit per unit (b) Find the instantaneous rate of change (in $ per unit) of C with respect to x when x = 100. (This is called the marginal cost. Its significance will be explained in a future chapter.) per unit

(a) Find the average rate of change (in $ per unit) of C with respect to x when the production level is changed from x= 100 to the given value. (Round your answers to the nearest cent. (1) X = 105 $ (ii) X = 101 $ per unit per unit (b) Find the instantaneous rate of change (in $ per unit) of C with respect to x when x = 100. (This is called the marginal cost. Its significance will be explained in a future chapter.) per unit

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

What is correct about the relation between the production function and costs? Question 10 options: If you become more productive, costs per unit increase There is no relation between costs and the production function Both the production function and the cost function are decreasing (have negative slope) If you become more productive, costs per unit decrease
Consider the following cost function (C): C= 0.25q3 - 4q? + 75q + F. The equation for average cost (AC) is: AC = |. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The equation for variable cost (VC) is: Vc=. (Properly format your expression using the tools in the palette.) The equation for marginal cost (MC) is: MC =. (Properly format your expression using the tools in the palette.)
Is each of the following statements true or false? In either case, briefly justify your answer. (a) If a firm has economies of scale, then its average cost is decreasing and lower than its marginal cost. (b) A firm whose total cost function is C(Q)=Q^2+Q must have economies of scale. (c) A firm with total cost function ?(Q) = 3Q+2 must have constant returns to scale. Plz do fast asap
Which cost concept is used to determine the most cost-efficient level of production? a) Average cost b) Total cost c) Marginal cost d) Variable cost
4. Variouss measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost (Dollars) Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 1 200 2 240 3 285 4 340 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers:…
Questions 3. For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = K + L b) Q = L + L/K c) Q = Min(2K,2L) d) Q = (L.5 )(K.5)
The marginal cost of producing the xth box of light bulbs is 4 + x2 dollars per box. Determine how much is added to the total cost by a change in production from x = 20 to x = 80 boxes. 1,000
For its current level of production, a firm is attempting to minimize its costs. The firm has determined that the marginal product of labor is 10, the marginal product of capital is 20 and the cost per unit of labor is $5, whereas the cost per unit of capital is $10. To minimize cost for the given output the firm should Increase the amount of capital and decrease the amount of labor Leave the amount of capital and labor as they are Decrease the amount of capital and increase the amount of labor
Consider the following marginal cost function MC= 5 + 2qi. (a) Does the production process exhibits increasing returns? decreasing returns? constant returns? (b) If the price is $23. What’s the optimal production level? (c) If the price is $31. What’s the optimal production level?
Assume that it costs a company approximately C(x) = 400,000 + 180x + 0.001x² 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 $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) C(10,000) $ (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--- O than the average cost from (b). This means that the average cost is ---Select--- O at a production level of 10,000 smartphones.