Cost Cost Firm A Firm C FIGURE 8-1 O O O LRAC Output LRAC Cost Output Cost 选择一项: O A. Firm A OB. Firm B C. Firm C D. Firm D E. none of the four firms Firm B Firm D 12 Refer to Figure 8-1. For which of the four firms would the family of short-run average total cost curves lie below the LRAC? LRAC Output LRAC Output

Cost Cost Firm A Firm C FIGURE 8-1 O O O LRAC Output LRAC Cost Output Cost 选择一项: O A. Firm A OB. Firm B C. Firm C D. Firm D E. none of the four firms Firm B Firm D 12 Refer to Figure 8-1. For which of the four firms would the family of short-run average total cost curves lie below the LRAC? LRAC Output LRAC Output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Could I have help finding the long run TC, AC, and MC?
A firm has a fixed production cost of $1,000 and a constant marginal cost of production of $700 per unit produced. What is the firm's total cost function? O A. TC = 1,000 + (700q) O B. TC = 1,000 + (700q). OC. TC = 700q. O D. TC = 1,000. The firm's average total cost (ATC) of production is O A. ATC = 1,000 + (700q). OB. 1,000 + (700q) ATC = Oc. 1,000 ATC = O D. ATC = 700q. O E. ATC = 700. If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain. OA. very small because the average total cost of production rises with output. O B.- very large because the average variable cost of production falls with output. OC. very small because the average fixed cost of production rises with output. O D. very small because the total cost of production rises with output. O E. very large because the average total cost of production falls with output.
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4) Suppose that a firm's production function is Q = Lº.4K0.6. The cost of a unit of labor is $8 and the cost of a unit of capital is $12. Write firm's long run cost function. Calculate the slope of isocost line. Calculate marginal rate of technical substitution. d. Suppose firm decides to produce 50 units, what is the cost minimizing combination of these two resources (labor and capital)? a. b. C.
Exhibit 21-9 Cost MC, ATC₂ MC1 ATC1 MC 3 PI ATC 3 Quantity of Output Refer to Exhibit 21-9. Let MC 1 and ATC 1 represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC 2 and ATC 2? O a. The market price of peanuts decreases. O b. The market price of peanuts increases. O c. The government lowers taxes paid by peanut butter producers. O d. The market price of peanuts remains constant.
Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 0 1 2 3 10 units 18 units 20 units $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O C. $20 O d. $30 O e. $50
Econ 201. Name Assume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q' + 20 For this cost function, Marginal Cost = MC = 10 q . Fill in the table with your values from your cost function. Total Cost AVC AFC ATC MC 20 -- 1 3 3) For any cost function, you can find min A setting ATC = Land solving for q. Create a graph showing the minimum of function, Add AVC and MC to your graph. ) Here MC is always increasing. As q increa nappens to ATC when it is less than MC and w happens to ATC with is more than MC? At what level of production is AVC at its minimum? (the table you made is enough information for you to fin value.) For any price, will your firm always be able to cover its variable cost?