Consider a competitive firm that produces two specific goods. The firm's cost function for the two goods is denoted as follows:C (91-92) -3912+3 92²where gj be the quantity of good 1 produced and 92 the quantity of good 2 produced. Assume good 1 is priced at 60 dollars and good 2 is price at 18dollarsFind the quantities produced of each good to maximize the firm's profit. Round to two decimal places, if necessary.91= Number92 NumberWhat is the profit of the firm after producing the ideal amount? Round to two decimal places, if necessaryNumberNow check the second order conditionsThe Hessian issin (a)fOxa 12E The principal minors are H₁absin (a)sin (a)8di0fdrTherefore the Hessian is tfpositive definitenegative definiteindefinite8Click for Lista S2a 52andClick for ListEand H₂ =

The cost function of a firm producing two commodities is given byThe price of first commodity is…

Consider a competitive firm that produces two specific goods. The firm's cost function for the two goods is denoted as follows: C (91-92) = 3912+3 9₂² be the quantity of good 1 produced and 92 the quantity of good 2 produced. Assume good 1 is priced at 60 dollars and good 2 is price at 18. where dollars Find the quantities produced of each good to maximize the firm's profit. Round to two decimal places, if necessary. 91- 92 Number Number What is the profit of the firm after producing the ideal amount? Round to two decimal places, if necessary Number Now check the second order conditions The Hessian is sin (a) Or ⠀⠀⠀ 00 12

Consider a competitive firm that produces two specific goods. The firm's cost function for the two goods is denoted as follows: C (91-92) = 3912+3 9₂² be the quantity of good 1 produced and 92 the quantity of good 2 produced. Assume good 1 is priced at 60 dollars and good 2 is price at 18. where dollars Find the quantities produced of each good to maximize the firm's profit. Round to two decimal places, if necessary. 91- 92 Number Number What is the profit of the firm after producing the ideal amount? Round to two decimal places, if necessary Number Now check the second order conditions The Hessian is sin (a) Or ⠀⠀⠀ 00 12

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

This question deals with cost curves and isoprofit curves. Keep in mind that the formula for a firm's cost function is: TC = FC + C(Q) TC → Total Costs: FC → Fixed Costs: C(Q) → Cost of production*Quantity produced → also known as Variable Costs Q2: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q --- Equation (1) %3D - Firm B: TC = 10 + 2Q --- Equation (2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. The cost of production per unit for each firm is $2. Firm B has a fixed cost of $10. (a) Plot isoprofit curves valuing $34,000 and $60,000 for each of the two firms. Can you provide an explanation for any differences that may exist? (b) Use the information given about firms A and B and appropriate diagrams/figures to explain how the equilibrium for both firms will change if a rival company increases its…
You are a fleet manager for a transportation company and, as such, are interested in the changes in the gasoline market since gasoline is an input of production for your company. A hurricane in the Gulf of Mexico disrupts oil refineries. In the short-run, you predict that this hurricane will, all else equal, Select one: a. Increase the supply of gasoline, pushing down its price and increasing your company's profit. b. Decrease the demand for gasoline, pushing down its price and reducing your company's profit. c. Decrease the supply of gasoline, pushing up its price and reducing your company's profit. d. Increase the demand for gasoline, pushing up its price and increasing your company's profit.
A competitive firm's production function is given by y = f(K, L) = 8K 1/2 + L 1/4 Assume that the price of the good produced is p = $100, the price of capital is r = $4, and the price of labor is w = $5. Find the profit- maximizing levels of capital and labor (K * and L * ). Find the profit-maximizing level of output (y * ). What is the maximum profit of the firm (π * )?
Keep in mind that the formula for a firm's cost function is: TC = FC+ C(Q) TC → Total Costs: FC → Fixed Costs: C(Q) → Cost of production*Quantity produced → also known as Variable Costs Q3: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q --- Equation (1) - Firm B: TC = 10 + 2Q --- Equation (2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. The cost of production per unit for each firm is $2. Firm B has a fixed cost of $10. (a) Use the information given about firm A and appropriate diagrams/figures (hint:think isoprofit curves, demand curves) to explain how the equilibrium will change for firm A if it's cost of production falls by $1 Assume demand curves to be linear
Please select all that are true regarding Minimum Efficient Scale (MES): if the quantity demanded is equal to Qmes, then the lowest cost solution is for one firm to supply the market MES is the quantity produced where average costs for a firm are at a minimum Long run average costs include fixed cost steps as quantities (scale) increase Quantities (x-axis) less than MES exhibit decreasing returns to scale due to diminishing marginal returns Short run average cost curves are for a given level of fixed cost, individually MES is the quantity demanded where total costs for a firm are at a minimum Quantities (x-axis) greater than MES exhibit decreasing returns to scale due to diminishing marginal returns Average costs do not include fixed cost since they don't change
Assume a firm's short-run cost function is given by the following expression: C (a) = 10+q+q %3D If the firm can sell each unit of their output at a price of p = 7, what is the firm's profit maximizing level of output () in the short-run?
Can you show how Qsc is = 2Pc? Which is the answer for this.
The supply curves for the only two firms in a competitive industry are given by: S₁: P = 2Q1 S2: P = 2 + Q2, where Q1 is the output of firm 1 and Q2 is the output of firm 2. These two supply curves are shown in the graph below. Draw the market supply curve for this industry. Instructions: Use the tool provided to plot 4 price-quantity combinations for prices $0, $2, $4 and $6. Price Market Supply 7 S₁ S2 की 6 5 + 3 2 1 0 1 2 3 4 Quantity сл 5 10 6 7 80 Tools line tool
Given the cost function underlying the figure, would two firms producing output Q (>0) always incur more total cost than one firm producing Q? 60- 55 Let q, be the output of Firm 1 and q, be the output of Firm 2. 50- According to the figure, the total cost of two firms producing Q (as a function of Q) is 45- 40- C(q+) + C(q2)=[]. 35- A 30- The total cost of one firm producing Q (as a function of Q) is E 25 C(Q) =]. く 20- 15- Thus, compared to one firm producing output Q, two firms producing output Q incur V total cost. 10- HAC MC 10 11 12 13 14 15 16 Q, Units per day Enter your answer in each of the answer boxes. JUL 11 MacBook Pro esc G Search or type URL @ #3 $ % & * AC MC, $ per unit
Window cleaning is a perfectly competitive market in Boston. The daily market demand for window cleaning in Boston is Q(P) = 360 ‒ 4P, where Q represents the daily number of houses served and P is the price per house; and (2) the current market price per house served is 30. Each window-cleaning firm faces a daily total cost of TC(q) 72+ 1/2 q2, where q represents the number of houses served per day. What is the current daily profit for each window-cleaning firm? A. -72 B. 0 C. 378 D. 400 E. 578
Imagine a perfectly competitive wood industry composed of 240 identical firms. The production output, q for each firm is determined by the function 9 = K1/2* L¹1/2, where K represents capital and L stands for labor. The $25 and PL prices for capital and labor are PK = $4, respectively. With labor fixed at 25 units, and the market demand described by Qd = 260 2P, what would be the economic profit or loss at equilibrium for these firms? -98 -99 99 98 = =
Firms in a competitive market can sell as much as they like at a market price of $16. The cost function for each firm is TC = 50 + 4Q +2Q². The associated marginal cost function is MC = 4 + 4Q and the point of minimum average cost is Q = 5. How much profit is each firm earning?