Question-3 (Cost Curves)The cost function of a firm is c(y) = 3y² + 6y+5.1. Find the Average variable and Marginal Cost curves of the firm.12. What is the quantity level where the average variable cost is minimized?

a) MC(y) = 6y + 6, AVC(y) = 3y + 6 b) quantity is zero at which average variable cost is…

Answered: Question-3 (Cost Curves) The cost…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. esc A company sells one of its products for $42 each. The monthly fixed costs are $2700. The marginal cost of the product is $10. Let q=quantity and C(q) = cost. a) Express the total monthly costs, C, as a function of q, the quantity produced each month. C(q) = 9= :0: 21 O Express the total monthly revenue, R, as a function of the quantity, q, sold each month. R(q) = c) Find the quantity, q, produced and sold each month at which this company will break even. Round your answer to a whole number. F1 50,252 8. F2 20 F3 ITEMS 000 000 F4 F5 INFO MacBook Pro S F6 tv F7 RA ► 11 F8 W < Previous Nex F9 Instructions ^ F10 4) F11 €
4. The minimum value for average costs is$19which occurs atQ=1and the vertical intercept is$20. (a) Find the average cost equation. (b) Graph. (c) Find the level of average costs when 10 units of output are produced.
a. The following presents the costs and revenues for a firm. Quantity Total Cost Marginal Total Marginal Revenue Profit Cost Revenue 15 1 30 100 48 190 3 59 300 4 68 450 74 500 6. 79 505 7 81 308 i. Calculate the marginal cost, marginal revenue and profit for each unit of production. ii. How many units should the firm produce to maximise profit? b. Describe the relationship between the marginal product and the total product of a firm
a. The following presents the costs and revenues for a firm. (The table is attached) Calculate the marginal cost, marginal revenue and profit for each unit of production. How many units should the firm produce to maximise profit? b. Describe the relationship between the marginal product and the total product of a firm.
4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity (Houses Painted per Month) Variable Cost (Dollars) 10 2 3 20 40 80 5 160 6 320 7 640 The efficient scale is houses Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars)
Question 1 Output (Q) Total Fixed Cost (TFC) Total Variable cost (TVC) 0 100 0 1 100 50 2 100 125 3 100 205 4 100 295 5 100 395 Which of the following is true of marginal costs, based on the data in the table above? 1. Marginal costs are rising throughout the output range shown. 2. Marginal costs are falling throughout the output range shown. 3. Marginal costs are constant
Question 2 Full explain this question
6. Firm's Costs 2 Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of pizzas) (Dollars) (Dollars) 280 1 320 40 350 70 3 380 100 4 420 140 5 470 190 530 250 The pizzeria's fixed cost is $
Using the following tablea) construct the cost schedule for a firm operating in the short runb) Graph the average variable cost, average total cost and marginal cost curves.QuantityProduction(thousands)TotalFixedcostTotalVariablecostTotalCostMarginalCostAverageFixedCostAverageVariableCostAverageTotalCost0 $400 0 $400 --- --- ---- ----1 $6402 $7203 $7804 $8205 $8506 $8907 $9808 $12009 $1700
Why does the marginal product curve have an inverted “U” shape?2. Using diagrams, explain the relationship between the marginal product curve andmarginal cost curve? 3. What are the three stages of production? At which stage of production should a profit-maximising firm produce? 4. Fill in the appropriate numbers in the blank spaces, given the following information:output Total fixedcost (RM) Totalvariable cost(RM) Averagefixedcost(RM)Averagetotal cost(RM)Marginalcost(RM) 0 100 01 100 202 100 503 100 604 100 655 100 70 5. Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980
Output (unit) Total Cost (RM) Price (RM) 1 550 660 2 670 585 3 720 510 4 740 435 800 360 960 285 1190 210 135 60 8 1520 2160 Table 3 Table 3 shows data for a firm's production and costs in the long run. a. Based on Table 3, compute the marginal cost, average cost, marginal revenue, and average revenue as the output increases from 0 to 9 units. C. Based on your calculation from question (a), show the quantity and price where the equilibrium condition is found.
Explain the concept of total revenue and total cost

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Question-3 (Cost Curves) The cost function of a firm is c(y) = 3y² + 6y+5. 1. Find the Average variable and Marginal Cost curves of the firm. 1 2. What is the quantity level where the average variable cost is minimized?