= 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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