Answered: Draw a theoretical inverted abatement…

Draw a theoretical inverted abatement cost curve when the Marginal Rate of Transformation is constant. Remember to label your axes

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 17SQ

See similar textbooks

Similar questions

Is this right or wrong (The question is the screenshot) (A) We want to minimize the cost function C(x, y) = 9x + 12y subject to the constraint U(x, y) =x (y + 3) = 128.9 and non-negativity constraints × ≥ 0 and y ≥ 0 We set up the Lagrangian: L(x, y, λ) = C(x, y) - λ(U(x, y) - 128.9) Now, we calculate the partial derivatives with respect to x, y, and 1: ∂L/∂x = 9 - λ(y + 3) ∂L/∂y = 12 - λX ∂L/λ = 128.9 - U(x, y) Setting these partial derivatives equal to zero, we have: 9 - λ(y + 3) = 0 2 12 - λx = 0 128.9 - x(y + 3) = 0 From equation 2, we get λ= 12/x. Substituting A into equations 1 and 3: 9 - (12/x)(y + 3) = 0 2. 128.9 - xY - 3x = 0 Now, we can solve this system of equations simultaneously. Let's start by solving equation 2 for X: 128.9 - xy - 3x = 0 xy = 128.9 - 3x Now, substitute this into equation 1: 9 - (12/x)(y + 3) = 0 9-(12/x)(128.9 - 3x + 3) = 0 9- (12/x)(131.9 -3x) = 0 9 -1,582.8/x + 36x = 0 Multiply through by x to get rid of the fraction: 9x - 1.582.8 ÷…
Suppose that the total cost (in dollars) for a product is given by C(x)=1300+ 160 In(2x + 1) where x is the number of units produced. (a) Find the marginal cost MC function. MC = (b) Find the marginal cost when 160 units are produced. (Round your answer to the nearest cent.) $ Interpret your result. The profit from the next unit will be approximately this amount. This is the total cost of producing 160 units. ◇ This is the total profit from producing 160 units. ○ It will cost approximately this amount to make the next unit. (c) Total cost functions always increase because producing more items costs more. What then must be true of the marginal cost function? ○ MC ≥ 0 ○ MC > 0 ○ MC ≤ 0 ○ MC = 0 ○ MC <0 Does it apply in this problem? ○ Yes Ο ΝΟ
True/False Marginal cost is the addition to the total cost when more unit of output is being produced.
Please help asap!!!!!!!!!!!!
A manufacturer named Kjell is facing the following product function.1 x = f(N, K) = 100Nº.8K0,2 The price for labor is NOK 500 per unit. The price for capital is NOK 125 per unit. a) Does the product function provide constant, increasing, or decreasing scale benefits? b) Kjell wants to produce 400 cakes at the lowest possible cost. How much labor and does he need capital? What will be the cost? c) The bank is not impressed by Kjell's production technology. He therefore receives a loan of only NOK 1,875. How many cakes can Kjell produce a maximum of NOK 1,875. d) Make a factor diagram (N, K). Note Kjell's adaptation from problem b) and c). Draw the isocost lines and the substituent template. e) A short-term strike leads to the price of labor rising to NOK 750. Kjell still has only NOK 1,875. How will Kjell change his adaptation from c)?How many cakes does he produce now? f) Kjell eventually starts making money, and wants to expand production to 650 cakes. What will be Kjell's new…
If marginal cost is greater than average total cost, then average total cost must be increasing. Group of answer choices True False
The curve connecting cost minimization levels of output is : a always a straight line b typically downward sloping c called firms expansion path d typically horizontal e typically vertically
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).
Which cost concept is used to determine the most cost-efficient level of production? a) Average cost b) Total cost c) Marginal cost d) Variable cost
Answer all questions otherwise skip.
Let the production function be Q = 4∗K1/4L1/4 assume that both factors are variable. (a) Derive the contingent demand functions for K and L (b) Substitute the contingent demand functions in the total cost that you minimized in part a) to obtain the total cost function. (c) FindtheamountofKandLnecessarytoproduceQ=8whenv=16andw=1 (with minimal possible cost). (d) Find the average and marginal cost functions.
Assume that housing output is a function of the quantities of capital (k) and land (l) employed by adeveloper, y = h(l, k), where h( ) is the housing production function. Also, assume that the developer’slong-run cost function is c = rl + ik, where r = price for a unit of land and i = price for a unit of capital.(a) Draw an arbitrary cost-minimizing scenario for this developer using isoquants and iso-costlines. Identify the cost-minimizing bundle as (l*, k*). Be sure to plot k along the y-axis. Pleaselabel your graphs. 5pt(b) Within a city, the price of capital, i, does not typically vary with a development’s distance fromthe city center. However, the price of land traditionally declines as distance from the centerrises. Using the cost-minimizing framework set up above, show how homes’ capital-to-landratios likely change as distance to the city center rises, holding housing output fixed. 5pt(c) Does your answer from above do anything to explain the differences in the types of homes…