Suppose the marginal benefit of writing a contract is $100 and the marginal cost of that contract is $150. Based on this information, the optimal contract length should be:

Q: Suppose that the cost function for a commodity is (x) = 90 + x? dollars. (a) Find the marginal cost…

A: Answer to the question is as follows :

Q: our construction company has built 50 houses so ar this year at a total cost to the company of $8…

A: Total cost is the total expenses incurred by a producer when he produces goods and services in the…

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: a) Does the product function provide constant, increasing, or decreasing scale benefits? b) Kjell…

A: x = 100N0.8K0.2 When both inputs are doubled, new production function is x* = 100 x (2N)0.8(2K)0.2 =…

Q: A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000. The…

A: The cost of manufacturing 240 snow-boards by employing 10 employees to whom the company is paying…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The optimal level of labor and capital is given by the point where the marginal rate of technical…

Q: For the cost function C(Q) = 100 + 4Q + 19Q2 + 2Q3, what is the marginal cost of producing the…

A: Answer to the question is as follows:

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: When Average vaiable cost (AVC) = 600 and Average product (AP)= 0.14. Then find the wage rate W.

A: Given data: AVC=600AP=0.14

Q: A large architectural firm has just landed a contract to build a hospital. Nine architects currently…

A: In economics, total cost is the sum of all costs incurred by a firm in producing a certain level of…

Q: Suppose the production is characterized by the function Q(K,L) = 50K05L05. The price of labor is $5…

A: Cost is minimized at the bundle of inputs where marginal rate of technical substitution is equal to…

Q: Two tomato processing plants are located along a line 100 miles long. Plant 1 is at mile 30 and…

A: Given information 2 tomato processing plants located along a line 100 mile. Plant 1 is at mile 30…

Q: A small consulting firm is only interested in hiring graduates (denoted by S), but it does not know…

A: Please find the answer below.   PRODUCTION FUNCTION: Production function, in economics, expresses…

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

A:

Q: C&A Fast Food has four activities in serving a customer: greet customer, take order, process order,…

A: The bottleneck activity, which has the longest processing time out of the four, will decide the…

Q: . A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK…

A: When the ratio of labour and capital prices equals the marginal rate of technical substitution of…

Q: Ais Ezhel employs Dj Artz (A) and Bugy (B) to produce songs according to following production…

A: We are going to use cost minimization method to answer this question.

Q: Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm…

A: Given information: Q= L - L2 / (23 *100) => Q =L - L2 / 2300 ------------> Production function…

Q: C&A Fast Food has four activities in serving a customer: greet customer, take order, process order,…

A: Bottleneck process is the process with longest processing time. Therefore, the bottleneck process is…

Q: A Silicon Valley firm produces an output of microchips denoted by y and has a cost function c(y).…

A: Solution: Competitive Market: It is a market structure where there are large numbers of buyers and…

Q: A street musician bought a new fiddle for $850.00. Assume she breaks 1 string each hour and can buy…

A: Cost is a sum of fixed cost and variable cost. Fixed cost does not depend on hours worked on playing…

Q: Coca cola uses labour(L) and capital (k) in its  production process.  It estimates that the…

A: Production function is Q=K0.5L0.5Where K is capital and L is labor. Price per bottle=4 Cost of…

Q: A large architectural firm has just landed a contract to build a hospital. Seven architects…

A: # Project Requirements : firm needs 400 architecture hours per week for 20 weeks to complete the…

Q: Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm…

A: Answer  According to question, below information given that : Production Function ( Q ) = L - L2/…

Q: Explain why optimal marks- up vary

A: There are three facts about markup: 1).Markup is greater than or equal to zero—that is, the firm…

Q: Inputs K, L, R and M cost £10, £6, £15 and £3 respectively per unit. What is the cheapest way of…

A: Since you have asked multiple questions, we will be solving only the first one. Please repost and…