Question 2. Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga and one in Scarborough. An analysis reveals that in the Mississauga location, it costs 1 59³+10000 (dollars) 50 to produce q widgets in a month, while in the Scarborough location it costs Cs(q) =q² + 20000 (dollars) СM (9) = to produce q widgets in a month. The company needs to fulfill orders for a total of 400 widgets in the month of March 2023. (a) How many widgets should each location be assigned to produce so that the total cost of production is minimized? (b) Due to differences in quality control and shipping costs, company XYZ decides to sell widgets produced at each factory at different price levels: widgets produced in Mississauga are to be sold for $2000 each, and widgets produced in Scarborough for $2800 each. Show that it is most profitable for the company to allocate all production to Scarborough.

Question 2. Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga and one in Scarborough. An analysis reveals that in the Mississauga location, it costs 1 59³+10000 (dollars) 50 to produce q widgets in a month, while in the Scarborough location it costs Cs(q) =q² + 20000 (dollars) СM (9) = to produce q widgets in a month. The company needs to fulfill orders for a total of 400 widgets in the month of March 2023. (a) How many widgets should each location be assigned to produce so that the total cost of production is minimized? (b) Due to differences in quality control and shipping costs, company XYZ decides to sell widgets produced at each factory at different price levels: widgets produced in Mississauga are to be sold for $2000 each, and widgets produced in Scarborough for $2800 each. Show that it is most profitable for the company to allocate all production to Scarborough.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The monthly cost function, in dollars, for a coffee maker factory is C(x) where x is the number of…

A: Cost function for a coffee makers produced= C(x) where; x= Number of makers produced Total cost;…

Q: Assume that it costs a company approximately C(x) = 484,000+ 160x + 0.001x² dollars to manufacture x…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: The manufacturer of an energy drink spends $1.28 to make each drink and sells them for $3.27. The…

A: Given information: A manufacturer of energy drinks spends $1.28 to make each drink and sells them…

Q: Suppose a company has fixed costs of $53,200 and variable cost per unit of 1/3x + 444 dollars,…

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

Q: Solve the problem. 16) A company estimates that the daily cost (in dollars) of producing x chocolate…

A: C(x) = 810 + 0.03x + 0.0002x2 . Company Produces 720 chocolate bars

Q: The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of…

A: Economic Order Quantity, also known as Economic Purchase Quantity, is the order quantity that…

Q: A multiproduct firm’s cost function is C(Q1 ,Q2 ) = 50 -0.2Q1Q2 + 0.1Q22 Are there economies of…

A: Cost function:Economies of scope occur when the total cost of producing a combination of goods or…

Q: Adam operates a factory that produces beach towels. His current level of output equals 1000 towels…

A: Average total cost is referred to as the sum total of all production costs divided by the total…

Q: What is the price? to make it breakeven

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: A skateboard manufacturer produces skateboards at a cost of $45 each, monthly fixed cost of $9000.…

A: Per unit cost of skateboards: $45 Monthly fixed cost: $9000 Let x be the quantity of skateboards…

Q: 5) If AVC = 20 & ATC = 25, then what is AFC? %3D %3D 6) If a firm produces 100 uunits of output and…

A: Fixed cost is independent of output produced.

Q: Tom, the only steel drum manufacturer in Narnia, can sell a single drum for $30. However, for every…

A: Here we calculate the output , price and Profit or loss by using the given information ,and fill the…

Q: 2) The owner of a restaurant that you are thinking of purchasing, tells you for x customers per week…

A: Cost : C(x)=15000+2x Revenue : R(x)=500x-3x2 a) Profit P(x) = Revenue R(x)-Cost C(x)…

Q: The total cost function for a product is C(x) = 875 ln(x + 10) + 1600, where x is the number of…

A: The cost function calculates the lowest possible cost of manufacturing a specified quantity of…

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: C(x) = 60 + x² dollars. %3D (a) Find the marginal cost at x = 4 units. MC(4) = Tell what this…

A: Cost function alludes to the functional connection among cost and result. It concentrates on the way…

Q: 2) For the following cost functions calculate and plot the average fixed costs, average variable…

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

Q: The estimated cost to produce x items is given by the function: C(x)= 0.004x² + 5x + 6000 Determine…

A: Marginal Cost (MC):Definition: Marginal cost is the additional cost incurred by producing one more…

Q: Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food…

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

Q: K Drilling of an oil well has a fixed cost of $40,000 and a marginal cost of M'(x) = 5000+56x…

A: Marginal cost is the change in variable cost incurred to produce an additional unit of good.

Q: Consider three firms that produce two products with quantities denoted 91 and 92. The three distinct…

A: Here we have to calculate the Total Cost (TC), Average Cost (AC), Marginal Cost (MC), and…

Q: A manufacturing company is currently producing 1,000 units of a product at a total cost of $10,000.…

A: Economies of scale refer to the cost advantage that companies experience when they increase their…

Q: The number of units that minimizes the average cost is

A: The average cost is the cost computed by diving the total cost of production by the total quantity.

Q: Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the…

A: The Average Cost is the per unit cost of production acquired by separating the total cost (TC) by…

Q: The hourly operating cost of a plane which seats up to 405 passengers is estimated to be $5,328. If…

Q: A firm manufactures a commodity at two different factories, Factory X and Factory Y. The total cost…

A: There are two factories available to a firm for undertaking production.Cost function : C(x , y ) =…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

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

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Break-Even Point The break-even point for a company is where costs equal revenues. Therefore the break-even point is the solution to a system of two equations. For each of the following, C represents cost in dollars to produce x items and R represents revenue in dollars from selling x items. 10x + 12, 000 C = 121. R=20x a. What are the company's fixed costs? b. How much does it cost to make one unit of the product? * Find the break-even point and interpret each coordinate in context. C.
Suppose we have another firm known as Sepanyan Corporation which makes a product known as Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?
E Let the demand function for a product be given by the function D(q) = -1.65g + 270, where q is the quantity of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $4, 000 and variable costs are $3 per item produced. If 96 items are produced and sold, find the following: A) The total revenue from selling 96 items (to the nearest penny). Answer: $ B) The total costs to produce 96 items (to the nearest penny). Answer: $ C) The total profits to produce 96 items (to the nearest penny. Profits may or may not be negative.). Answer: $ Question Help: C ME PE Video 66°F Mostly cloudy
An electric power plant uses solid waste for fuel in the production of electricity. The cost Y in dollars per hour to produce electricity is Y = 8 + 0.8X + 0.16 X^2, where X is in megawatts. Revenue in dollars per hour from the sale of electricity is 16X - 0.3X^2. Find the value of X that gives maximum profit.
In Bushville, residents typically either work as salaried employees or owns small business on Central Square. Salaried employees on average earn $56,000 per year. All of the stores are rented by real estate companies who own the buildings. Currently the typical store brings in $325,000 of revenue per year. The typical variable costs needed to run a store in Bushville (paying for labor, buying material, etc.) are $210,000 year. a) What is the opportunity cost of running a store? Explain how you know this. b) Given this opportunity cost, what rent will the real estate companies charge? Explain. c) Suppose that a new highway brings more visitors to town, and stores on Central Square now brings in $472,000 of revenue per year with modest increase in variable costs to $236,000. What will happen to rents? Who will benefit – shop owners or the real estate companies?
Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2 + %3D and the demand function of the product is: p(x) = 200 - 0.05q a. Determine the marginal cost, marginal revenue and marginal profit when q=50 and q=150? b. Interpret the results of the calculation in part (a) if it is related to cost, revenue and profit?
For the given cost function C(x)=250√x+ x^2/3375 -finda) The cost at the production level 1100 (ANSWERED, 8650.079) b) The average cost at the production level 1100 (ANSWERED, 7.86) c) The marginal cost at the production level 1100 (ANSWERED, 4.42) Since I have the answers for the three subparts above, how would I answer the two subparts: d) The production level that will minimize the average cost. e) The minimal average cost.
Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (z), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (z). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 5z – 8/I – 3. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is Number
Q 4: Answer the questions below using the following Table (you can also take help from the Figures if needed): MC ($) 7,259 6,548 5,838 5,125 4,417 3,706 MC ($) 6,541 6,821 7,102 Total cost ($) 105,311,250 202,070,000 Students AC ($) Undergraduate 13,750 27,500 41,250 55,000 68,750 82,500 Students 7,659 7,348 7,038 6,727 6,417 6,106 369,985,000 441,168,750 503,745,000 Total cost ($) AC ($) Graduate 2,750 5,500 8,250 11,000 13,750 16,500 12,140 33,385,000 9,399 8,672 8,365 8,249 8,228 51,697,000 7,383 7,664 7,945 92,015,000 113,423,750 135,762,000 (a) IDENTIFY and EXPLAIN differences between the universities' cost structures for undergraduate and graduates? (b) The new Vice Chancellor has asked you for advice on whether she should consolidate or expand the programs. Provide your advice using the information in the table. (c) What is the effect of the introduction of a license fee of 9 million dollars by the government for undergraduate programs being offered by universities on the…
Q) Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory doesn’t achieve economies of scale?
Assume that the unit cost for a pair of levi jeans is $10 and that levi's desired markup on cost is 90%. Further, assume that jc penny's desired markup on cost is 75%. The correct formula for determining levi's desired markip on cost is: a. 10(.10) b. 19(.25) c. 10(.90) d. 19(.75) e. cannot determine with the information given
4 parts pls