A. CI 2,000. 8. Ci-2,000 - 8004 Cig- 2,000 - 1250 14 16 Ci OE Ci-2,000 . Quartty 1250 wite down the equation for the pply oure The supply curve OA paso. OB P-2,000 - 0e OC. P-200 OD P-500 OR P-100 If price is Se00, how many unit wil the frm produca The fim wil produce nits of ouput (Enter your ponse rounded to two decimal places) 2000 1200- What is the level of prot trepan ad yog
A. CI 2,000. 8. Ci-2,000 - 8004 Cig- 2,000 - 1250 14 16 Ci OE Ci-2,000 . Quartty 1250 wite down the equation for the pply oure The supply curve OA paso. OB P-2,000 - 0e OC. P-200 OD P-500 OR P-100 If price is Se00, how many unit wil the frm produca The fim wil produce nits of ouput (Enter your ponse rounded to two decimal places) 2000 1200- What is the level of prot trepan ad yog
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**Transcription for Educational Website**
**Suppose that a firm's production function is:**
\[ q = 5x^{0.5} \]
In the short run, where there are fixed costs of $2,000, and \( x \) is the variable input whose cost is $1,250 per unit.
**What is the total cost of producing a level of output \( q \)? In other words, identify the total cost function \( C(q) \).**
**The total cost of producing a level of output \( q \) is:**
- A. \( C(q) = 2,000 \)
- B. \( C(q) = 2,000 + \frac{q^2}{5} \)
- C. \( C(q) = 2,000 + \frac{q^2}{25} \)
- D. \( C(q) = 1,250q^2 \)
- E. \( C(q) = 2,000 + \frac{1250q^2}{25} \)
**Write down the equation for the supply curve.**
---
**The supply curve is:**
- A. \( P = 50q^2 \)
- B. \( P = 2,000 + 50q \)
- C. \( P = 200q \)
- D. \( P = 50q \)
- E. \( P = 100q \)
**If price is $800, how many units will the firm produce?**
The firm will produce _____ units of output. *(Enter your response rounded to two decimal places.)*
**What is the level of profit?**
Profit equals $_____. *(Enter your response rounded to two decimal places.)*
**Illustrate your answer on a cost-curve graph.**
1. **Using the line drawing tool, draw the marginal cost curve. Label it 'MC'.**
2. **Using the point drawing tool, indicate the profit-maximizing quantity at the market price. Label it 'A'.**
*Carefully follow the instructions above, and only draw the required objects.*
**Graphs Description:**
The images contain two graphs, each with the y-axis labeled "Dollars per unit of output" and the x-axis labeled "Quantity." Both graphs use a grid with intervals of 2 for both axes, ranging from 0 to 20 on the x-axis and 0 to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe216f9fc-8377-4f06-a321-a5700ae89c55%2F6ea50b68-894c-47c6-8add-bb8bf26e3473%2F33e0el6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Transcription for Educational Website**
**Suppose that a firm's production function is:**
\[ q = 5x^{0.5} \]
In the short run, where there are fixed costs of $2,000, and \( x \) is the variable input whose cost is $1,250 per unit.
**What is the total cost of producing a level of output \( q \)? In other words, identify the total cost function \( C(q) \).**
**The total cost of producing a level of output \( q \) is:**
- A. \( C(q) = 2,000 \)
- B. \( C(q) = 2,000 + \frac{q^2}{5} \)
- C. \( C(q) = 2,000 + \frac{q^2}{25} \)
- D. \( C(q) = 1,250q^2 \)
- E. \( C(q) = 2,000 + \frac{1250q^2}{25} \)
**Write down the equation for the supply curve.**
---
**The supply curve is:**
- A. \( P = 50q^2 \)
- B. \( P = 2,000 + 50q \)
- C. \( P = 200q \)
- D. \( P = 50q \)
- E. \( P = 100q \)
**If price is $800, how many units will the firm produce?**
The firm will produce _____ units of output. *(Enter your response rounded to two decimal places.)*
**What is the level of profit?**
Profit equals $_____. *(Enter your response rounded to two decimal places.)*
**Illustrate your answer on a cost-curve graph.**
1. **Using the line drawing tool, draw the marginal cost curve. Label it 'MC'.**
2. **Using the point drawing tool, indicate the profit-maximizing quantity at the market price. Label it 'A'.**
*Carefully follow the instructions above, and only draw the required objects.*
**Graphs Description:**
The images contain two graphs, each with the y-axis labeled "Dollars per unit of output" and the x-axis labeled "Quantity." Both graphs use a grid with intervals of 2 for both axes, ranging from 0 to 20 on the x-axis and 0 to
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