From the standpoint of the final solution (amount of input used and the resulting amount of output produced): Group of answer choices A: Setting MRP = MFC is the same as setting MR = MC B: MR and MRP are always the same C: MC and MFC are always the same D: All other answers are correct

From the standpoint of the final solution (amount of input used and the resulting amount of output produced): Group of answer choices A: Setting MRP = MFC is the same as setting MR = MC B: MR and MRP are always the same C: MC and MFC are always the same D: All other answers are correct

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.6P

See similar textbooks

Related questions

Q: a) type the profit function of the manufacturer,?(?, ?). B) determine the end points of the profit…

A: Total Revenue -: It refers to the total receipts of a firm from the…

Q: Frank is a talented gardener who maintains a wonderful garden of flowers and vegetables at his…

A: economic profit and loss are measured as the difference between the revenue earned from selling the…

Q: The price/demand function of a company is p= 42 – 0.001D and the cost function is 30D + 1200.…

A: We know that at equilibrium level demand and supply for goods and services are equal at certain…

Q: Based on graphical representation, select the best answer from the choices beloW. All input bundles…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: The following represents the production of goods for a country Commodity Quantity 2010 Quantity 2009…

A: Nominal GDP=Units of output×Price per unitsReal GDP=Units of output × Price per unit from base…

Q: A company with two different plants manufactures guitars and banjos. Its production costs for each…

A: The cost of production of a firm involves costs of labor, raw materials, and capital. Out of the…

Q: The cost of controlling carbon dioxide emissions [C(E)] at a firm goes up rapidly as the amount of…

A: Marginal cost is defined as the additional cost incurred by a firm when it produces an additional…

Q: minimal cost for obtaining a sp

A: Utility is defined as the total satisfaction that any consumer derives after he/she consumes any…

Q: The wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine…

A: The optimal level of production is the result where the minor income got from the last unit…

Q: A farmer can produce f(x,y) = 208-√4x² + y² units of produce by utilizing x units of labor and y…

A: To calculate the marginal productivity of labor at a specific point, we can take the partial…

Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…

A: Production cost is the monetary value incurred on factor of production . And average total cost is…

Q: A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR =…

A: At the equilibrium, marginal cost (MC) matches with marginal revenue (MR), that is, MR=MC.

Q: Question 2. Company XYZ produces and sells widgets. Production is done at two separate factories,…

A: Given that , CMq=150q3+10000 (dollars) and CSq=q2+20000 (dollars) where q is number of widgets in a…

Q: TC= 1/3 Q^3 – 15Q^2 + 480Q- a) Write down the equa b) Find the values of Q f c) Plot the graph of…

A: AFC which is known as Average Fixed Cost refers to the per-unit cost (fixed) of production, which is…

Q: A toll road commission is planning to locate garages for tow trucks along a 94-mile circular…

A: Given: Overall circumference (P) = 94 Cost of transportation (t) = 47 Fixed cost (F) = 4500…

Q: (a) A firm has production function q(k,l) = k'/³12/3, where k denotes the capital used and I denotes…

A: Given : q(K,L)=K1/3L2/3 This depends upon two inputs K and L subject to the budget constraint.…

Q: a. sketch the Graph of y = 2* and y = G. Also describe the application of exponential and %3D…

Q: (a) Derive the first order condition showing how much labor and capital a producer should use to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A T-shirt screener can screen t-shirts (q) in two different ways. He can either use a fast screening…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average…

A: It is given that the annual demand rate is 1,000 units and average production rate is 2,000 units.…

Q: At the profit maximizing level of input use, Which of the following are true? (i) MVP=0 (ii) MVP=MIC…

A: MVP (Marginal value product) is the additional revenue generated from hiring or employing an extra…

Q: Jenna knits scarves and then sells them on Etsy, an online marketplace. Let C(x) =4x+20 represent…

A: (A). We have C(x)=4x+20 and the value of x should be from 1 to 6. Put values of x in the cost…

Q: .A company can sell its only product and in a perfectly competitive market at a price of 15. To…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A company estimated that the relationship between the unit price and demand per month for a…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: The demand and supply of pizza is defined by the following equations: Qd = D(P, Y ) = 1 + Y − 2P…

A: Exogenous variables are independent, and endogenous variables are dependent. Therefore, if the…

Q: In the long run, the farmer can change both his amount of land and his amount of labor. Suppose he…

A: The graph between labour and output is represented by the table given below, the production function…

Q: Question 5 A manufacturing company produces the quantity q of a product that depends on L units of…

Q: The Maximum Requirment matrix is given below: T0: 2 6 4 7 4 T1: 3 3 6 6 7 T2: 2 2 2 1 1 T3: 2 5…

A: Since you are asking multiple questions, we are answering first question for you. If you want…

Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

. From the standpoint of the final solution (amount of input used and the resulting amount of output produced):

Group of answer choices

A: Setting MRP = MFC is the same as setting MR = MC

B: MR and MRP are always the same

C: MC and MFC are always the same

D: All other answers are correct

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A T-shirt screener can screen t-shirts (q) in two different ways. He can either use a fast screening machine (F) or a slow screening machine (S). Screen use is defined in terms of ”hours” running. His production function is f(F, S) = 10F + 6S. (a) The screener wants to be able to produce 120 shirts. List three feasible and efficient production plans (combinations of inputs) for doing this. (b) Graph the screener’s isoquant curve for q = 120. (c) The hourly cost of using the fast machine is $800 and the hourly cost of the slow machine is $200. What is the cost minimizing (optimal) combination of inputs for producing 120 shirts? (d) Suppose the screener must now produce 400 shirts. What is the cost minimizing combination of inputs?
A toll road commission is planning to locate garages for tow trucks along a 94-mile circular highway. Each garage has a fixed cost of $4,500 per day. Towing jobs are equally likely along any point of the highway, and cost per mile towed is $47. If there were 4,500 towing jobs per day, what number of garages would minimize the sum of the fixed costs and towing costs? Instructions: Enter your answer as a whole number. garages
Spark Studio produces commercials for other companis. A 2-minute commercial, for example, needs exactly 5 minutes of filming and 8 minutes of editing. Let x1 denote the minutes of filming and x2 denote the minutes of editing. a) Suppose that filming costs $45 per minute and editing costs $10 per minute. To produce a 5-miunte commercial, how many minutes of filming and how many minutes of editing Does Spark studio need to minimize cost? How much is this cost? Draw a graph of the isoquant and isocost line to show this optimal bundle. b) Rocket Media, another commercial production company, uses a different technology. The length of commercials it produces is equal to the longer of the two: one-third of the length of filming and one-fourth of the length of editing. When w1 = 15 and w2 = 10, derive Rocket Media's cost function c(y).
please explain
suppose noW that the firm must pay a fixed cost of ē > 0 in order to produce (e.g., this could be the cost of buying a manufacturing plant). If the firm chooses not to produce at all, it does not incur the fixed cost. If it chooses to produce any strictly positive quantity, it must incur the full fixed cost of č. Suppose p = w = r = 4. When will the firm choose to produce a strictly positive amount of the good Y? Write down the firm's supply and profit functions.
***PLEASE NOTE - An answer is NOT needed for parts A, B and C; these are included to assist with answering part D. Only an answer for part D is required, but it is derived from the previous answers*** Given: A farmer raises peaches using land (K) and labor (L), and has an output of ?(?,?)= ?0.5?0.5 bushels of apples. a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis. b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve? c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor?…
Given that the variable cost is $25 per customer, with a fixed cost of $200, he needs to fnd which price maximizes, therefore my question is how do I find what amount he earns if profit is maximized.
A farmer can produce f(x,y) = 208-√4x² + y² units of produce by utilizing x units of labor and y units of capital. (a) (b) (c) Calculate the marginal productivities of labor and capital when x = 12 and y = 10. Let h be a small number. Use the result of part (a) to determine the approximate effect on production of changing labor from 12 to 12+h units while keeping capital fixed at 10 units. Use part (b) to estimate the change in production when labor decreases from 12 to 11.5 units and capital stays fixed at 10 units. (a) The marginal productivity of labor when x = 12 and y = 10 is (Simplify your answer.)
can you please provide explanations and working
Please help.
Jenna knits scarves and then sells them on Etsy, an online marketplace. Let C(x) =4x+20 represent the cost C in dollars to produce 1 to 6 scarves. A.) Create a table to show the relationship between the number of scarves x and the cost C. B.) What are the domain and range of C? C.) What is the meaning of C(3)? D.) What is the meaning of the solution to the equation C(x) =40?
Suppose that the dollar cost of producing x appliances is c(x) = 1000 + 70x-0.1x². a. Find the average cost per appliance of producing the first 100 appliances. b. Find the marginal cost when 100 appliances are produced. c. Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly. CUCKO The average cost per appliance of producing the first 100 appliances is $ (Round to the nearest cent as needed.) /appliance.