appropriate position on the diagram that answers the question. The correct position for each marker is worth 4 points. 1) Show with marker 1 on the horizontal axis the equilibrium level of output in period 1 that would occur if marginal costs equal zero and if there was no allocation for period 2. 2) Show with marker 2 on the horizontal axis the equilibrium level of output in period 2 that would occur if marginal costs equal zero and if there was no allocation in period 1. 3) Show with marker 3 on the horizontal axis the equilibrium level of output in each period if the marginal cost is zero output is allocated optimally between the two periods. 4) Show with marker 4 on the vertical axis the marginal user cost. 5) Show with marker 5 on the vertical axis the maximum (choke) price in period one. Marginal Net Benefits in Period 1 (dollars per unit) 6 5 3 Quantity in Period 1 Present Value of Marginal Net Benefits in Period 1 Present Value of Marginal Net Benefits in Period 2 Marginal Net Benefits in Period 2 (dollars 0123456 8 9 10 11 12 13 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 per unit) 6 5.45 16 17 18 19 20 Quantity in

appropriate position on the diagram that answers the question. The correct position for each marker is worth 4 points. 1) Show with marker 1 on the horizontal axis the equilibrium level of output in period 1 that would occur if marginal costs equal zero and if there was no allocation for period 2. 2) Show with marker 2 on the horizontal axis the equilibrium level of output in period 2 that would occur if marginal costs equal zero and if there was no allocation in period 1. 3) Show with marker 3 on the horizontal axis the equilibrium level of output in each period if the marginal cost is zero output is allocated optimally between the two periods. 4) Show with marker 4 on the vertical axis the marginal user cost. 5) Show with marker 5 on the vertical axis the maximum (choke) price in period one. Marginal Net Benefits in Period 1 (dollars per unit) 6 5 3 Quantity in Period 1 Present Value of Marginal Net Benefits in Period 1 Present Value of Marginal Net Benefits in Period 2 Marginal Net Benefits in Period 2 (dollars 0123456 8 9 10 11 12 13 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 per unit) 6 5.45 16 17 18 19 20 Quantity in

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.4P

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Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average production rate of 2,000 units. Setup cost is $10; carrying cost is $1. What is the optimalnumber of units to be produced each time?
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1. Minimize the costs for a firm faced with the cost function C = 3x² + 2xy +5y² +500 subject to the production quota x + y = 36. Show that the costs are minimized. (a) Set up the Lagrangian objective function (b) FOCs to get the critical values and stationary value (c) SOCs to verify that C* is a minimum (using a bordered Hessian matrix).
Cost, Revenue & ProfitFor these problems, xx will represent the number of items and yy will represent the money.The fixed costs for a certain item are $215 per week. The cost to produce each item is $2 per item.Using this information, what is the cost equation? Give your answer in slope-intercept form:y=y= The retailer intends to sell each item for $13/item.Using this information, what is the revenue equation? Give your answer in slope-intercept form:y=y= If in this week 13 items are made, and all items are sold in the week, what are the total costs to the retailer?Cost = $What is the revenue from selling 13 items?Revenue = $Finally, what is the profit for this retailer?Profit = $Box 1 & 2: Enter your answer as an expression. Example: 3x^2+1, x/5, (a+b)/cBe sure your variables match those in the question.
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Refer to the figure. What is the marginal cost of the 15th hour spent on this activity? (Round to the nearest tenth) Total Cost E b n Z a=122 b= 82 c=56 x=9 y = 15 z = 19 Hours
Please only do the multiple choice.
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A certain electronics manufacturer found that the cost C to produce x DVD/Blu-ray players can be found using the 0.04x? + 8x + 800. If the marginal cost equation C were $19.2, how many DVD/Blu-ray players were produced?
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Q)What type of cost is the tuition paid for college credit after the census date when a refund is no longer possible? Marginal Cost Opportunity Cost Sunk Cost Total Cost