Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?

Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQ

See similar textbooks

Similar questions

Would you consider an interest payment on a loan to a film an explicit or implicit cost?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What is the difference between a fixed input and a variable input?
A firm has a Cobb-Douglas production function, q = 2L^0.5K^0.5 . If it faces prices of w = 20 and r = 40 and its capital is fixed at K = 100, what are its short-run average fixed cost, average variable cost, and marginal cost functions? Plot these curves I have my answers to the AFC, AVC, MC, I just need to verify how to plot the curves. What the plotted curves look like, thanks in advance!
If Apple move to operate in Vietnam instead of China, what are examples of fixed cost and variable cost of Apple company?
Please define the long cost curve and the short run cost curve in your own words but not more than 150 words?
Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1,000 gumballs per hour. a. Explain why the cost per hour of producing 1,000 gumballs is 2v + w (where v is the hourly rent for gumball presses and w is the hourly wage). b. Assume Acme can produce any number of gumballs they want using this technology. Explain why the cost function in this case would be TC = q(2v +w), where q is output of gumballs per hour, measured in thousands of gumballs. c. What is the average and marginal cost of gumball production (again, measure output in thousands of gumballs)? (show the complete formula) Draw the graph for the average and marginal cost curves for gumballs assuming v=3, w-5 (show working) Now draw the graph for these curves for v=6, w=5.( show working) Explain why these curves have shifted.
Fill the missing values on the table below by using the following cost formulas: Let Q be the amount of the output a firm produces. The essential cost equation: TC = FC+VC Mathematically, if Q +0, can I do as following equation or not? TC FC VC A=Average, then ATC = AFC + AVC TC ATC= : AFC = FC ; AVC = VC ATC TC,-TC: Oj - Q. AQ Output (Q) (Instructional Moddules per Average Fixed Cost (AFC) Average Total Marginal Cost Cost (ATC) Fixed Variable Total Average Costs Costs Costs Variable (MC) (FC) (VC) (TC) Cost (AVC) Month) XXXXXXXXXXX XXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX D4 B A S38 B $13 D1 C1 D2 D3 C2 C3 2 B H2 H1 H3 S33 H4 3 B L2 L1 L3 L4 54 C4 516 J3 J4 1 S72 4 B. 12 B. E1 C5 E2 E3 E4 M2 M1 C6 M3 M4 S36 S19 G3 7. B. 12 1 C7 13 14 G1 5185 C8 G2 G4
Can you please solve question # 14
What factors account for a fall in the long-run cost curve?
Explain the relation between average variable cost and marginal cost for both the short-run and long-run. Describe how the graphs of the cost functions look as part of your response.
1200 100.0 20.0 F20 100 -100 A company produces school buses. The graphs of the Cost function (red) and the Revenue function (blue) are given on the figure. (You may click on the figure to see a bigger version.) The horizontal axes represents quantity in number of units. Cost and Revenue are measured in thousands of dollars. Answer the following questions. 1. What are the fixed costs? Answer: thousand dollars. 2. Suppose the current level of production is 19 buses. Should the company produce 20 th bus? Answer "yes" or "no" 3. Between 0 and 100, approximately what level of production maximizes the profit? (Or minimizes the losses if the company doesn't make any profit). Answer: