L7. Suppose that a producer has the following short cost functions: vC = 600 4Q +E FC = $50 where Q is output. L7A) Derive the equation of the short-run total cost (TC) and what is TC if Q= 5 units? L7B) Derive the equation of the short-run marginal cost (MC) and what is the short-run MC if Q 5 units?
L7. Suppose that a producer has the following short cost functions: vC = 600 4Q +E FC = $50 where Q is output. L7A) Derive the equation of the short-run total cost (TC) and what is TC if Q= 5 units? L7B) Derive the equation of the short-run marginal cost (MC) and what is the short-run MC if Q 5 units?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![L7. Suppose that a producer has the following short cost functions:
VC = 600- 4Q +Q
FC = $50
where Q is output.
L7A) Derive the equation of the short-run total cost (TC) and what is TC if Q=5 units?
L7B) Derive the equation of the short-rua marginal cost MC) and what is the short-run MC if Q =5 unite](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5cb90a99-c99c-4314-99e1-e01551d4edbf%2Fc4b2a052-dd1a-4196-a4c8-c989e333aec2%2F96p6pkj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:L7. Suppose that a producer has the following short cost functions:
VC = 600- 4Q +Q
FC = $50
where Q is output.
L7A) Derive the equation of the short-run total cost (TC) and what is TC if Q=5 units?
L7B) Derive the equation of the short-rua marginal cost MC) and what is the short-run MC if Q =5 unite
![Samantha has been working for a law firm and earning an annual salary of $80,000. She decides to open
her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental,
$1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will
cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning
annual interest of $500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5cb90a99-c99c-4314-99e1-e01551d4edbf%2Fc4b2a052-dd1a-4196-a4c8-c989e333aec2%2Fioqro4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Samantha has been working for a law firm and earning an annual salary of $80,000. She decides to open
her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental,
$1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will
cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning
annual interest of $500.
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