= Firm A has cost function c(q, r, w). At output q = 4 total cost is c(4, r, q) = 60, and at output q = 5 total cost is c(5, r, q) = 75. If Firm A has constant marginal cost, and input prices double to 2r and 2w, how much will it cost to produce q = 6 units of output (what is c(6, 2r, 2w))? (HINT: First calculate the marginal cost for c(q, r, w), then calculate c(6, r, w), and then calculate c(6, 2r, 2w)) O c(6, 2r, 2w) = 75 c(6, 2r, 2w) = = 90 O c(6, 2r, 2w) = 150 O c(6, 2r, 2w) = 160 O c(6, 2r, 2w) = 180
= Firm A has cost function c(q, r, w). At output q = 4 total cost is c(4, r, q) = 60, and at output q = 5 total cost is c(5, r, q) = 75. If Firm A has constant marginal cost, and input prices double to 2r and 2w, how much will it cost to produce q = 6 units of output (what is c(6, 2r, 2w))? (HINT: First calculate the marginal cost for c(q, r, w), then calculate c(6, r, w), and then calculate c(6, 2r, 2w)) O c(6, 2r, 2w) = 75 c(6, 2r, 2w) = = 90 O c(6, 2r, 2w) = 150 O c(6, 2r, 2w) = 160 O c(6, 2r, 2w) = 180
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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