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 find the answer. A. .13. B. .36. C. .50. D. .68. E. .83.

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 find the answer. A. .13. B. .36. C. .50. D. .68. E. .83.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 2SQ

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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.
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 a Excel spreadsheet or otherwise to find the answer.
10:29 A bartleby.com ce ago A company manufactures small refrigerators. The total cost to manufacture 141 refrigerators is $9135. The total costs to manufacture 172 refrigerators is $10995. Assume that total cost, C, is linearly related to the number of refrigerators, x, the company manufactures and includes a fixed cost and a cost per refrigerator. A) Write the cost function, C(x) in terms of x, the number of refrigerators manufactured. Preview B) The total cost to manufacture 106 refrigerators is $ C) The fixed costs are $ D) The cost to produce each additional refrigerator is $
1a) 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. b) A research study published in Social Science Medicine, “Production Functions for General Hospitals,” estimated the following general hospital production function in the Netherlands: Q = 5*Staff.34*Beds.64*Drugs.04*Specialists.02, where Q is a measure used by the authors for patient care. Suppose a hospital currently utilizes the following inputs: Staff =20, Beds = 120, Drugs = 60, Specialists =10. Use a spreadsheet to find the following or otherwise. If the hospital increases its specialists by one (1), that is, employs an 11th specialist, the increase in Q (marginal product) will be: c) A study published in Social Science Medicine, “Production Functions for General Hospitals,” estimated the following general hospital production function: Q =…
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.)
A firm has the following information on production and costs from past data: Output (Y) 0 12 18 6 Total Cost (TC) 9 2775 5361 8199 If the total cost function is known to be TC = aY' + bY ² + kY + ƒ , and the demand for the product of the firm is Y = 320-(1/2). P answer the following: • Determine the coefficients of the cubic cost function. • Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of output and price. • What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
Can you please solve question # 14
1. A firm estimates its production function as Q = -2.4 + 20*L -.5*L< + 30*K -1.00*K2 + 15*F -.3*F<. Total cost is TC = $2*L+ $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, K and F. How much F (Fuel) should the firm use? A.F=7.90. B.F=9.58. C.F=10.75. D.F=12.63. E. F=14.88.
0.7 A firm has the following information on production and costs from past data: Output (Y) Total Cost (TC) If the total cost TC=aY³ + bY²+kY+f, and the demand for the product of the firm is Y = 320 - (1/2). P answer the following: ● 0 9 6 2775 18 8199 12 5361 function is known to be Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of output and price. What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
7-16. Economists at Jensen Enterprises used time-series data to estimate the following total cost function for the firm: TC=200-2Q+0.05 Where TC is total cost and Q is the output rate. a. Determine an equation for the average cost function. Plot this function, and find the output rate that minimizes average cost. b. Is the production process characterized by decreasing, constant, or increasing returns to scale? c. If the market price of output is $4.32 per unit, is there a scale of plant that would allow the firm to earn an economic profit or at least to break even?
Use the information in the graph to find the values for the following costs at an output level of 500. Total fixed cost is $(Enter your response as an integer.) Total variable cost is $(Enter your response as an integer.) Total cost is $(Enter your response as an integer.) 3 €500 Units of output MC G ATC AVC
The MARGINAL cost (in dollars) for a certain product is given by C'(x) = 18x + 3 . If the overhead cost is $2000 determine the TOTAL cost of producing 10 units. Fully simplify your answer.