20.Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total co function is: TC = 200 + 3Q + 2Q². А. 1060; В. 200; 20; С. D. 10.
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- For the given cost function C(x)=250√x+ x^2/3375 -finda) The cost at the production level 1100 (ANSWERED, 8650.079) b) The average cost at the production level 1100 (ANSWERED, 7.86) c) The marginal cost at the production level 1100 (ANSWERED, 4.42) Since I have the answers for the three subparts above, how would I answer the two subparts: d) The production level that will minimize the average cost. e) The minimal average cost.You are the owner of a small company that makes laptops at the price of $550. Your variable cost of production is 0.75q, such that q represents number of laptops made. If you were going to build a second company that has the following variable cost for 0.3q. What is the maximum fixed cost that you are okay with paying for this new company?Businesses wanted to reduce their cost to the minimum without compromising the product quality and violating laws. The total fixed cost decreases if the output increases. Thus the business is left with the variable cost to manage. Notably, the concept of the economies of scale also works for the government, non-profit organizations and individuals. The entity becomes more efficient as it produces more output and reduces cost as a result. The organization can benefit from the economics of scale, consequently, the consumers enjoy lower prices, and the economy expands to increase more demand. For huge businesses, economies of scale provide a competitive advantage over small enterprises. There are two types of economies of scale. The cost that the management can control is internal, while the cause for the cost to decrease attributed to geographic location, government policies, and industry changes are externals. Typically the internal economy of scale is found in large businesses as a…
- Coca cola uses labour(L) and capital (k) in its production process. It estimates that the production function facing it is given by Q= K0.5 L0.5. The company can sell a bottle of coke at GH4. The cost of a machine is GH3 and that of Man- hour is GH5. The firm's total cost if production at the end of production is expected to be GH 3000. Required: Determine The optimal level of capital and labour usage The firm’s firm’s profit at the optimal levels of capital and labour usage The firm’s elasticity of output with respect to labour and capital and interpret itEngle sells Lebanese sandwiches. The cost of ingredients (bread, meat, spices, etc.) to make a sandwich is US$2. Engle pays her employees US$60 per day. She also incurs a fixed cost of US$120 per day. What is Engle's total cost per day when she does not produce any sandwiches and does not hire any workers? $120 $2 $0 $60Economies of Scale. Figure 7.10b illustrates the situation in which a larger plant can attain a lower minimum average cost than a smaller plant. That is, economies of scale (or increas- ing returns to scale) exist. This is evident from the fact that the larger firm's ATC curve falls below the dashed line in the graph (m, is less than c). The greater efficiency of the large factory might come from any of several sources. This is the situation Elon Musk was count- ing on for his Shanghai gigafactory.
- For the cost function C(Q) = 100 + 2Q + 3Q², the total variable cost of producing 2 units of output is Multiple Choice о 16. 10. 4. 12.Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Average Total Cost (Dollars per bike) Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 1 360 200 160 240 400 720 2 540 300 160 160 300 540 3 720 400 240 160 200 360 Suppose Ike’s Bikes is currently producing 600 bikes per month in its only factory. Its short-run average total cost is per bike. Suppose Ike’s Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes usingone factory . On the following graph, plot…Businesses wanted to reduce their cost to the minimum without compromising the product quality and violating laws. The total fixed cost decreases if the output increases. Thus the business is left with the variable cost to manage. Notably, the concept of the economies of scale also works for the government, non-profit organizations and individuals. The entity becomes more efficient as it produces more output and reduces cost as a result. The organization can benefit from the economics of scale, consequently, the consumers enjoy lower prices, and the economy expands to increase more demand. For huge businesses, economies of scale provide a competitive advantage over small enterprises. There are two types of economies of scale. The cost that the management can control is internal, while the cause for the cost to decrease attributed to geographic location, government policies, and industry changes are externals. Typically the internal economy of scale is found in large businesses as a…
- Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = = 500 Q = 600 360 200 160 240 400 720 540 300 160 160 300 540 720 400 240 160 200 360 Suppose Ike's Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is $400 per bike. Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using three factories ▼ On the following graph, plot the three SRATC curves for Ike's Bikes from the previous…The Cobb-Douglas production function for a particular product is N(x,y) = 80x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $60. Answer the questions (A) and (B) below. (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. C (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.For its current level of production, a firm is attempting to minimize its costs. The firm has determined that the marginal product of labor is 10, the marginal product of capital is 20 and the cost per unit of labor is $5, whereas the cost per unit of capital is $10. To minimize cost for the given output the firm should Increase the amount of capital and decrease the amount of labor Leave the amount of capital and labor as they are Decrease the amount of capital and increase the amount of labor
