A firm's unit cost of production is £15 per oulput good. Let P be the unit price of the output good and Q be the total output level. Which of the following statements is correct? Select one answer. O Point (Q, P) = (2,000, 20) is on the isoprofil curve representing the profit lovel £20,000. O Point (Q, P) = (2,000, 20) is on a lower isoprofit curve than point (Q, P) = (1,200, 25). O Points (Q, P) = (2,000, 20) and (4,000, 16) are on tho samo isoprofit curve. O Point (Q, P) = (5,000, 15) is not on any isoprofit curve.

A firm's unit cost of production is £15 per oulput good. Let P be the unit price of the output good and Q be the total output level. Which of the following statements is correct? Select one answer. O Point (Q, P) = (2,000, 20) is on the isoprofil curve representing the profit lovel £20,000. O Point (Q, P) = (2,000, 20) is on a lower isoprofit curve than point (Q, P) = (1,200, 25). O Points (Q, P) = (2,000, 20) and (4,000, 16) are on tho samo isoprofit curve. O Point (Q, P) = (5,000, 15) is not on any isoprofit curve.

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

Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost structure of the typical ice cream producer is as follows. Average total cost is equal to 50 1 1 ATC(Q) +÷Q, average variable cost is equal to AVC(Q) =;Q, and marginal cost is equal to 2 MC(Q) = Q. Now, suppose that a new scientific study comes out that shows that soil pollution from rock salt (a key input for making ice cream) is extremely hazardous to human health. In response, the government decides to impose harsh re-zoning restrictions on any land once used for making ice cream. This reduces the market rent for land used to make ice cream, which in turn lowers the opportunity cost of operating an ice cream factory. This reduction in the opportunity cost of capital causes the total fixed cost of ice cream production to fall to 32, but there is no change to variable cost. Give formulas for the typical ice cream producer's new average total cost curve ATC(Q) and marginal cost curve MC(Q).
Can these be answered as well? Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p?
2.2
A catering company producing fruit ice, in the Tandy school, has a production function q = 10min(k,l), where k is capital and 1 is labor. a. 15% If v = 81000 and w = 500 and P = 8600, where v, w, and P are as per the lecture notes, how many units of fruit ice will be produced and how much profit will be obtained? b. 10% Draw the supply curve for this catering company.
Please answer fast
2.1
Sarge's Lawn Mowing Service is a small business a perfectly competitive market. The prevailing market price of lawn mowing is $20 per acre. Sarge's costs are given by total cost = 0.1q² + 10q + 50, where q = the number of acres Sarge chooses to cut a day. How many acres should Sarge choose to cut to maximize profit? values without any comma, or decimal places.) How much is Sarge's maximum daily profit? your answer in numerical values without any dollar sign, comma or decimal place (please put your answer in numerical (please put
PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? What is the shutdown price and quantity for this firm? Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above. Given the market price of Pak$ 50 how many units should the firm produce? how many firms are competing in this market in short-run? How many firms will be in the industry in the long-run? How do you interpret the profit or loss condition of PakPerfect? Use a two-panel graph of the Market and…
Could you fully explain the part (C)? And please dont miss any details.
The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ Number
Consider the following total cost (TC) curve: 20 $/Q1 15 10. 5 5 MC 10 1 15 TC In the two graphs below, please (carefully) draw the marginal cost (MC) and the average variable cost (AVC) curves corresponding to the TC curve. Please identify the coordinates of the point on each curve at Q=3 (three) and Q = 15 (fifteen). That is, what is MC and AVC at Q=3 and = 15? Still, in other words, identify the coordinates of two points on each of the two curves. Output AVC