54123OutputAlpha Limited is a perfectly competitive firm. The total cost (in dollars) of producing Qper day is given by the following cost function:C(Q) - 10+5Q+Q²FixedCostVariableCostTotal Cost ATCAFCAVCMC 5Questions1. What is the fixed cost (FC) of Alpha Limited? Calculate the variable cost (VC) andthe total cost (TC) at each output level.2. Calculate the average total cost (ATC), the average fixed cost (AFC) and theaverage variable cost (AVC) at each output level.3. Calculate the marginal cost (MC) at each output level. The marginal cost (MC)intersects with the average total cost (ATC) curve at which point? The marginalcost (MC) intersects with the average variable cost (AVC) at which point?4. State where diminishing marginal returns sets in. Justify your answer.5. When will a firm shut down in the short-term or exit in the long-term?

Total cost is the sum of fixed cost and variable cost. Fixed cost remains same at each level of…

Answered: Alpha Limited is a perfectly…

Alpha Limited is a perfectly competitive firm. The total cost (in dollars) of producing Q per day is given by the following cost function: C(Q) = 10 +5Q+Q²

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose a firm has following total cost function: TC=(2Q+4)(Q+3)+240. Find the fixed cost (FC),…

A: Given, TC=(2Q+4)(Q+3)+240 Total cost is defined as the total expenses that a company or firm has to…

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Output(Q)=100 units AVC(Q=100)=$25 ATC(Q=100)=$32 TFC(Q=100)=? We know that: Average Fixed Cost is…

Q: The inverse demand function and cost function is given by P= 50-2Q and C = 10+2Q Calculate the total…

A: Demand function, P = 50 -2Q Cost function , C= 10 +2Q

Q: Find the average cost function if cost and revenue are given by C(x) = 127 + 8.6x and R(x) =…

A: Given cost function:- C(x) = 127 + 8.6x x = units of output produced

Q: Q5: If the marginal cost (MC) of a firm is a function of output, C'( Q) = 10e0.5Q , and if the fixed…

A: If we have the marginal cost function, we can integrate to find the total cost. MC= 10e0.5Q…

Q: 13. a) Pine Hill Dairy sells milk packs at different prices in Barbados (at price p) and in Antigua…

A: "Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product…

A: Variable costs are the cost that changes with the change in output. Fixed costs are the cist that…

Q: Your company's cost function (monthly) can be defined as; TC = cost per unit (AC) × quantity…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

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: Find the marginal profit function if cost and revenue are given by C(x) = 183 + 0.3x and R(x) = 9x -…

A: Marginal profit function measures how much the profit changes when there is a unit change in the…

Q: The average cost function for skateboards is given by: AC = (15)^2 - 30(15) + 350 = 225 - 450 + 350…

A: The relationship between average cost (AC) and marginal cost (MC) is crucial for understanding…

Q: The total cost function of a firm is:- 23Q² - 13Q + 40 Find the average cost function

A: The total cost (TC) is divided by the entire output to get the average cost of production (Q). All…

Q: Which of the following is an example of a variable cost for a bookstore? a) Rent for the store…

A: With regards to a bookshop's functional costs, understanding the distinction between fixed costs and…

Q: Suppose each firm of the industry has a short-run total cost curve of TC = 5+4q+q², where q is…

A: Total cost of production refers to the total monetary value incurred on fixed as well as variable…

Q: Sergio Lopez is a publisher of Latin American poetry. His fixed cost is $525, and the cost to…

A: Fixed cost is $525, and the cost to produce each individual copy of his book is $3.50. A linear…

Q: Which cost concept is used to determine the level of output at which a firm neither makes a profit…

A: While inspecting the monetary parts of a business, different cost ideas become an integral factor.…

Q: d) If James decides to make a total of 51rolls and pies per day and charges different prices as…

A: In order to optimize the production bundle when the firm charges different prices, we shall…

Q: Diseconomies of scale exists over the range of output for which the long run average cost curve is?

A: Diseconomies of scale exists over the range of output for which the long run average cost curve is…

Q: If the short-run total cost function for a firm is TC = 3,000+100Q, Given: TC = 3,000 + 100Q TC =…

A: Marginal cost (MC) = dTC/dQ = 100

Q: In the short run, if average variable cost equals $50, average total cost equals $75, and output…

A: The total fixed cost refers to those costs that remain the same regardless of the level of…

Q: In the following problem, c represents the average cost per unit, which is a function of the number…

A: Marginal cost refers to the addition to the total cost when one more unit of the variable factor is…

Q: Hosiery Mill The total-cost function for a hosiery mill is estimated by Dean to be c = -10,484.69…

A: Given that;Total cost function is ;Where q is output in dozens of pairs and c is total cost in…

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: An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15 Q^2…

A: Total Cost is the cost that includes the fixed cost and variable cost of production. Cost function;…

Q: Suppose a firm has an average total cost function given by: ATC = 11094/q +6 + 6q. Calculate the…

A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…

Q: Suppose each firm of the industry has a short-run total cost curve of C=5+2q+q2, where q is output…

A: Total cost is the total cost of producing the goods. Total cost is the sum of total fixed cost and…

Q: Consider a firm in a competitive industry. The firm's average cost curve and marginal cost curve are…

A: Equilibrium is where the demand curve intersects the supply curve. In perfect competition, In short…

Q: Find the marginal profit function if cost and revenue are given by C(x) = 190 + 0.6x and R(x) = 7x -…

A: Answer to the question is as follows:

Q: A Chinese high technology manufacturing firm has a production function of 0.80 0.20 q=16L (based on…

A: The Average Variable Cost (AVC) is the total variable cost per unit of output. Variable costs are…

Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

5
4
1
2
3
Output
Alpha Limited is a perfectly competitive firm. The total cost (in dollars) of producing Q
per day is given by the following cost function:
C(Q) - 10+5Q+Q²
Fixed
Cost
Variable
Cost
Total Cost ATC
AFC
AVC
MC

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

Step 2

Step 3

Step 4

Step 5

Step 6

Step by step

Solved in 6 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

Month (m): 4 Day (d): 1 Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = m q2 + d = (30) For a cost function like yours, Marginal Cost (MC) = 2 m q . Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Average Total Cost = Cost (q)/q = Variable Cost = Average Fixed Cost = FC/q = Marginal Cost = 2 m q = Average Variable Cost = VC/q = (15) Fill in the table with your values from your cost function. q Total Cost AVC AFC ATC MC 0 0 0 -- -- -- 1 2 3 4 5 6
An economist estimated that the cost function of a single-product firm isC(Q) = 100 + 20Q + 15Q^2+ 10Q^3Based on this information, determine:1. The average variable cost of producing 10 units of output.
Suppose the long-run total cost function is C(q) = 4q2. The cost-output elasticity is %3D equal to
At quantities less than the long-run minimum cost per unit of output, the long run average total cost curve is: a) tangent to the maximum b) to the left of the minimum c) tangent to the minimum d) to the right of the minimum
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to be AVC = 88−0.026Q + 0.000003Q2 Greene Enterprises faces total fixed costs (TFC) of $300,000. At what level of output does average variable cost (AVC) reach its minimum value for Greene Enterprises?
A multiproduct firm’s cost function was recently estimated as C( Q1,Q2 ) = 90 − 0.5 Q1 Q2 + 0.4Q21+ 0.3Q22 a. Are there economies of scope in producing 10 units of product 1 and 10 units of product 2? b. Are there cost complementarities in producing products 1 and 2? c. Suppose the division selling product 2 is floundering and another company has made an offer to buy the exclusive rights to produce product 2. How would the sale of the rights to produce product 2 change the firm’s marginal cost of producing product 1?
Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the marginal cost is ____ (iI) the average cost is ____
If average variable cost is $20 and total fixed cost is $500 at 10 units of output, then average total cost at this output level is:
Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? The cost of cocoa (l mark); Business rates (local taxes) (1 mark); An advertising campaign for a new chocolate bar (1 mark); The cost of electricity (paid quarterly) for running the mixing machines (1 mark); Overtime pay (l mark).
A firm’s long-run total cost curve is given by: C(q) = 40q − 10q2 + q3 . Over what range of output does this technology exhibit decreasing returns to scale? Group of answer choices q>8 q<5 None of the above are correct. q>10 q>5 Note: don't use chat bot
Given the total cost equation: TC = 144 +2Q+Q² what is the average cost when the firm produces at the level of Q that yields the minimum average cost?
(a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300e0 1Q+2 TC= 3000 when Q = 0 Firm 2: C'(Q) = 41 +30Q -5Q² TC =400 when Q = 0 (i) What is the fixed cost for each firm (ii) Find the total cost function C(Q) for each firm (iii) average cost function for each fim (iv) Find the total cost for producing up to 100 units