Answered: A firm’s estimated long-run total cost…

A firm’s estimated long-run total cost function is LRTC = 160Q - .6Q2 + .002Q3. Suppose the firm is producing 100 units of output. The cost elasticity is ____

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Related questions

Q: Total fixed cost is $300 and total variable cost is $700 Calculate total cost

A: The given information is as follows:- Total fixed cost = $300 Total variable cost = $700 We have to…

Q: What is AC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Average cost measures the per unit cost of production.

Q: If the firm hires 5 employee, total fixed costs equals

A: Total fixed cost is the cost which is even exits when output is zero. So at zero output we have the…

Q: Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If…

A: For the constant return to scale production technology, the average cost of production remains the…

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A: Fixed cost does not depend on output produced. It remains fixed throughout the production. Total…

Q: Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs of production.…

A: The function that defines the relationship between various production inputs like capital, labor,…

Q: Use the information in the graph to find the values for the following costs at an output level of…

A: In order to find the values for the costs at an output level of 500 units, we'll use the information…

Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…

A: Given,

Q: Total Cost Analysis The manager of a rival T-shirt stand found that her cost to produce 10 T-shirts…

A: The essence of total cost analysis is to identify all relevant costs over the entire life of a…

Q: A cost function is given. C(q) = 3800 + 7q – 0.03q² + 0.0003q³ (a) Find the average cost and…

A: Disclaimer :- as you posted multipart questions we are supposed to solve only the first 3 questions…

Q: Marsha made an extensive study into the cost function of the dining halls on the A&M campus. She…

A: Marginal cost is the additional cost incurred when one more unit of output is produced. It is the…

Q: If average fixed cost is $30 Calculate total fixed cost if output is 30 units

A: According to the above question, the values given are:- Average fixed cost = $30 Output = 30 units…

Q: The average cost function of a firm is:- 2Q² - 350 Find the total cost function

A: The data presented in the question above is:- We are given with the average cost function of a firm…

Q: (a) Find the number of hours for which each cost function will give the same cost. hours (b) !f the…

A: Fron the provided data, Acme (x); 140+10x Bell (x);200+4x

Q: A hotel that produces 100 pizzas has a variable cost of OMR 50 and a fixed cost of OMR 200.…

A: The firm's costs and revenues are the important components that help the firm set its target and…

Q: in part b, how do we know that is the cost function? where are those variables coming from?

A: In part B of the question, you are asked to find expressions for the cost-minimizing levels of labor…

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

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

Q: What is this firm's efficient scale?

A: The production level at which a company achieves the lowest ATC per unit is referred to as its…

Q: The total cost function of a firm is:- 23Q? - 13Q + 40 Find the average cost function

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: If variable costs for a firm is $660, the average total cost is $8, and the firm sells 120 units,…

A: Variable cost as the name suggests changes with respect to the output produced. For example- the…

Q: Whenever the Total revenue is $31 and the explicit costs is $20 find the Accounting profit.

A: As per the question, Total revenue = $31 Explicit cost is written to be as = $20

Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…

A: The firms in the market tend to estimate their fixed costs, variable costs, total costs, revenue,…

Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…

A: Output Total Cost (TC) Fixed Cost (FC) Variable Cost (VC) (TC-FC) Average Variable Cost…

Q: Find the cost function for the marginal cost and fixed cost. C = Marginal Cost Fixed Cost (x = 0) dC…

A: The marginal cost function is given below:The fixed cost of production (at x =0), is…

Q: Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs of production.…

A: A production function is a concept in economics that represents the relationship between inputs…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average Total Cost is also called per unit cost of production. It is calculated by dividing the…

Q: Calculate the total revenue if explicit costs of the firm are $400 and the accounting profit is $850

A: Given information is :- Explicit costs = $400 Accounting profit = $850 We need to find the value of…

Q: How to calculate the Average cost of producing 1, 2,...15

A: average cost = C/Q = 1000 + 100*Q for every Q we first calculate the C by using the formula C=1000+…

Q: Use the information in the graph to the right to find the values for the following at an output…

A: The marginal cost refers to the change in total cost of production that comes from producing an…

Q: Find total cost if output is 39 units and average cost is $22

A: The Given information is as follows:- Output of firm = 39 units Average cost = $22 We have to find…

Q: Determine the average cost function.

A: Cost is a function of the quantity produced. It measured the total cost of producing a given level…

Q: Find average variable cost given:- Total variable cost is $490 and the output is 30 units

A: The data presented in the question above is:- Total variable cost = $490 Output = 30 units Average…

Q: C(q) = 9720 + 500q – 1.5q² +0.005q Dollars to produce q lots of its latest board game named…

Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…

A: Output Total cost ($) 0 400 1 500 2 550 3 600 4 650 5 700

Q: Total variable cost is $40 and total fixed cost is half of it. Find total cost

A: According to the above mentioned question, the values are:- Total variable cost = $40 million Total…

Question

A firm’s estimated long-run total cost function is LRTC = 160Q - .6Q²+ .002Q³. Suppose the firm is producing 100 units of output. The cost elasticity is ____ You can use Excel spreadsheet or otherwise to answer this question.

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

Please see attached image for question. Please note that there is an overline above the "K" in the oven/captial equation (K = 1). It does not show clearly in the image.
Calculate explicit cost given:- Accounting profit = $6600 Total revenue= $10,000
A firm manufacture robots, for which $10000 machinary is used. The additional per unit cost is $100. If the firm produce 5 robots in a week. Find the total cost of production and average fixed costs.
Imagine a smartphone company has the following costs when they produce 200 phones: $50 in average fixed cost and $140 in average total cost. What would be the total variable cost for this company when they produce 200 phones? Type your numeric answer and submit
$150 125 100 75 50 Cost per Unit 25 0 5 e 15 25 30 MC ATC AVC Units per day Use the graph above to answer the following question: What is the total cost of producing 15 units? Note: enter answer with only numerical values and round up to the nearest tenth. For example, if you think the answer is "$101.58" then enter the answer "101.6" in the space below.
(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.
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.
A company can produce 25 items for a total cost of $ 2250 with a fixed cost of $ 1000 and a selling price of $ 75. Find the cost, revenue, and profit function. Find the break even point. Sketch on the same graph the revenue and cost function and clearly label where the break even point is. When does the company have profit? Explain.
Practice V 3 #7 Can you show me how to do this
TC = 81 + 16Q + 3Q2What is the average variable cost when 10 units are produced?
Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal revenue of the fourth unit produced. The marginal revenue of the fourth unit produced is________. Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced. The marginal revenue of the eighth unit produced is________.
If you were a taxi driver, the daily revenue and cost are as the following: Revenue: $250 Variable cost (gas, your labor…): $190 Mortgage payment for car: $70 License Fee: $30 For profit maximization, will you operate your taxi business today? What is the minimum daily revenue to keep the operation in the short run? What is the minimum daily revenue to keep the operation in the long run? Please show calculation formula and/or equation.