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

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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.
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
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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
Dere T:n? (Key Question) Assume the following cost data are for a purely competitive producer: 21-4 Average variable Average total Average fixed Marginal cost Total Product cost cost cost $45 40 $105.00 72.50 60.00 52.50 49.00 47.50 $45.00 42.50 40.00 $60.00 30.00 20.00 15.00 12.00 10.00 35 30 37.50 37.00 37.50 38.57 40.63 43.33 46.50 35 40 45 6. 47.14 55 8.57 48.13 50.00 52.50 65 7.50 6.67 75 10 6.00 a. At a product price of $56, will this firm produce in the short run? Why or why not? If it is preferable to produce, what will be the profit-maximízing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output? b. Answer the relevant questions of 4a assuming product price is $41. c. Answer the relevant questions of 4a assuming product price is $32. d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3). (4) Quantity supplied, 1500 firms…
3. XYZ corporation produces widgets. Its short-run marginal cost curve is given by MC (q) = 10 – 5q + q² (this is a parabola whose minimum occurs at q = 2.5). XYZ's fixed costs are 10. In a two panel diagrams, graph the following cost curves: (a) total cost, (b) total variable cost, (c) total fixed cost, (d) marginal cost, (e) average variable cost, and (f) average total cost. Your diagrams do not need to be scale, but must be internally consistent (i.e. the relationships between different curves must be correct). You do not need to find mathematical expressions for the other cost curves – you only need to sketch lines that are consistent with the shape of the marginal cost curve.
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question 28 (Figure) The figure shows the cost curves for a representative firm. At an output level of five units, the average fixed, variable, and average total costs, respectively, would be Cost 180 160 140 120 100 80 60 40 0 012345 A. $120; $66.67; $186.67 B. $40, $80, $120 C. $66.67; $53.33; $120 D.$100; $120; $220 13 14 15 16 Quantity & Moving to another question will save this response. Question 28 of 4.
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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?