Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: 1. Find fixed cost 2. find variable cost 3. find marginal cost 4. find average cost
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Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then:
1. Find fixed cost
2. find variable cost
3. find marginal cost
4. find average cost
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- Suppose a firm’s cost function is C(q) = 4q2 + 16, where C(q) is the total cost, and q is the levelof output.(a) Find variable cost, fixed cost, average cost, average variable cost, and average fixed cost.(b) Show the average cost, marginal cost, and average variable cost curves on a graph.Question 4. You are a car manufacturer and you have the following cost function. C (Q) = 100 +2Q+4Q² From the equation: a. Calculate fixed cost when you produce 5 cars b. Calculate total cost when you produce 5 carsSuppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for production and sale of the coffee makers are $1,000$1,000 plus $13$13 for each coffee maker produced.a. Write the function for monthly total costs C(x)=C(x)= b. What is the fixed cost? c. What is the marginal cost? d. Interpret the marginal cost. Each additional coffee maker made decreases the cost by this many dollars. If the number of coffee makers increases by this amount, the cost increases by $1. Each additional coffee maker made yields this many dollars in cost. If the number of units made is increased by this amount, the cost decreases by $1. e. What is C(300)C(300) ? f. Interpret C(300)C(300) When this many coffee makers are produced the cost is $300300. For every additional coffee maker produced the cost increases by this much. This is the cost (in dollars) of producing 300 coffee makers. For each $1 increase in cost this many more coffee makers can…
- Suppose that the cost function for a commodity is C(x) = 40 + x2 dollars. (a) Find the marginal cost at x = 4 units. MC(4) = Tell what this predicts about the cost of producing 1 additional unit. The cost to produce the 5th unit is predicted to be $ (b) Calculate C(5) – C(4) to find the actual cost of producing 1 additional unit. Need Help? Read It Watch ItA firm’s cost function is C(q) = 100q − q^2+1/5q^3+450(a) Derive the marginal cost, the average variable cost, and the average cost.(b) Show that the average variable cost equals the marginal cost at the output level atwhich the average variable cost reaches the minimum.Consider the following cost function: C(q) = 100 + 10q+q² (i) What are the formulas for the Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Total Cost (ATC) and Marginal Cost? (ii) At what output level is Average Total Cost (ATC) lowest? What is the minimum Average Total Cost (ATC)? (iii)
- When a toy factory makes x dolls a day their total cost is C(x) = 50 + 9x + 0.02xr² dollars. What is the average cost of a doll when 58 dolls are made in one day? a. b. What is the marginal cost when 58 dolls are made in one day?Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale. Find and graph the cost,average cost, and marginal cost functions. Interpret the graphs andexplain the idea of diminishing returns.A company is planning to manufacture mountain bikes. The fixed monthly cost will be $100,000 and it will cost $100 to produce each bicycle. A. Write the cost function, C, of producing x mountain bikes per month. C(x) = B. Write the average cost function, C, of producing x mountain bikes per month. C(x) = C. Find and interpret C(500), C(1000), C(2000), and C(4000). C(500) = Interpret C(500). When bicycles are produced in a month, it costs $ to produce each bicycle. C(1000) = Interpret C(1000). When bicycles are produced in a month, it costs $ to produce each bicycle. C(2000) = Interpret C(2000). When bicycles are produced in a month, it costs $ to produce each bicycle. Click to select your answer(s). (99+
- What is total fixed cost when output is 2, fixed cost is 25, and average cost is 30This is a graph of our firm’s costs. Label the lines on the graph using the following labels: average fixed cost (AFC), average variable cost (AVC), average total cost (ATC) and marginal cost (MC). Then label the shut down and breakeven points on the graph. The accountants claim that we are at our profit maximizing point. You decide to investigate potential diseconomies of scale. What diseconomies of scale do you think you might find? How could these be addressed and hopefully decrease costs? (20 points)39) If the marginal cost curve is below the average variable cost curve, then A) average variable cost is increasing. C) marginal cost must be decreasing. B) average variable cost is decreasing. D) average variable cost could either be increasing or decreasing.