Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-200q² +q° where Q is measured as thousands of feet of piping. The long-run marginal cost of Peter's pipes is given as LMC = 20,000 – 400q+3q? Divide total cost by q to obtain Peter's long-run average cost of producing pipe.

Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-200q² +q° where Q is measured as thousands of feet of piping. The long-run marginal cost of Peter's pipes is given as LMC = 20,000 – 400q+3q? Divide total cost by q to obtain Peter's long-run average cost of producing pipe.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.4: Costs In The Short Run And In The Long Run

Problem 4QQ

See similar textbooks

Similar questions

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?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Are fixed costs also sunk costs? Explain.
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?