A Silicon Valley firm produces an output of microchips denoted by y and has a cost function c(y). Assume that the first and second derivatives of the cost function are strictly positive. Of the chips it produces, a fraction 1 − α are unavoidably defective and cannot be sold. Working chips can be sold at a price p and the microchip market is highly competitive. How will an increase in production quality affect the firm’s profit?

Q: Suppose that the cost function for a commodity is (x) = 90 + x? dollars. (a) Find the marginal cost…

A: Answer to the question is as follows :

Q: Assume that it costs a company approximately C(x) = 484,000+ 160x + 0.001x² dollars to manufacture x…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: The manufacturer of an energy drink spends $1.28 to make each drink and sells them for $3.27. The…

A: Given information: A manufacturer of energy drinks spends $1.28 to make each drink and sells them…

Q: Suppose you as a business person find that the price of your product is less than minimum average…

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Q: For the cost function C(Q) = 200+3Q2+4Q3, what is the average fixed cost of producing 10 units of…

A: We have total cost function: C(Q)=200+3Q2+4Q3          ... (1) We have to calculate average fixed…

Q: A firm has two different plants. Let the cost at plant 1 be given by c(y1) = 5y2 1 + 100y1, and the…

A: Since you have posted a question with multiple sub-parts, we will solve the subparts asked by you.…

Q: f(x1, 12) = (x1 - 1)0.25x9-5.

A: We are going to use the relationship between upward sloping marginal cost curve and supply curve to…

Q: A multiproduct firm’s cost function is   C(Q1 ,Q2 ) = 50 -0.2Q1Q2 + 0.1Q22 Are there economies of…

A: Cost function:Economies of scope occur when the total cost of producing a combination of goods or…

Q: A firm can produce output using three inputs and the following production 111 technology: q=x¹x¹x.…

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Q: Suppose a firm produced 2 goods x and y and must produce x + y = 42 and have a cost function of c =…

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

Q: Assume TC = 392 + 35Q + 2Q2. At what Q is average cost at its minimum? Enter as a value.

A: Here, total cost function is given as: TC=392+35Q+2Q2 According to which average cost would be:…

Q: The market for smart thermostats has grown increasingly competitive. Producers of smart thermostats…

A: As we know that in the long run equilibrium the form earns only zero profit That means normal profit…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

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Q: A Chinese high technology manufacturing firm has a production function of q=16L0 0.80K0.20 (based on…

A: In economics, the cost of creating each new unit of a commodity or service in the short run is shown…

Q: For the cost function C(Q) = 100 + 4Q + 19Q2 + 2Q3, what is the marginal cost of producing the…

A: Answer to the question is as follows:

Q: Consider a firm with the production function ƒ(x1, x2) = x₁/²x2. The price of the two inputs is w₁ =…

A: Given information Production function q=X10.5X2 W1=2--- price of factor X1 W2=1---- price of factor…

Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…

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Q: firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2.…

A:

Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…

A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…

Q: Suppose that an ISP leases a new server in order to increase the speed of Internet service by…

A: The term cost describes any expense a business has when producing its goods or rendering its…

Q: The variable x represents the number of HDTVs manufactured and sold in a given month.  The variable…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: For a certain company, the cost function for producing x items is C(x)=40x+150 and the revenue…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The number of units that minimizes the average cost is

A: The average cost is the cost computed by diving the total cost of production by the total quantity.