Not use ai please Suppose you are the manager of a watchmaking firm operating in acompetitive market. Your cost of production is given byC = 200 + 2q2,where q is the level of output and C is total cost. (The marginal costof production, MC(q), is 4q; the fixed cost, FC, is $200).If the price of a watch is $120, how many watches should you produceto maximize profits?You should produce 30 watches. (Enter your response as an integer.)What will the profit level be?Profit will be $ (Enter your response rounded to two decimalplaces.)1

Answered: Image /qna-images/answer/9983b25c-cdbb-4a4a-8479-2f70e69546f3.jpg

Answered: Suppose you are the manager of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a marginal cost of $50 per unit produced. Producing more than 100 units has a marginal cost of $70 per unit produced. The firm cannot produce more than 150 units. How much does it cost to produce at q=0? at q=50? at q=100? at q=125? at q=150? Graph the firm’s marginal cost function
Suppose that the dollar cost of producing x appliances is c(x) = 1000 + 70x-0.1x². a. Find the average cost per appliance of producing the first 100 appliances. b. Find the marginal cost when 100 appliances are produced. c. Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly. CUCKO The average cost per appliance of producing the first 100 appliances is $ (Round to the nearest cent as needed.) /appliance.
Suppose that the profit from the sale of Kisses and Kreams is given by the following, where x is the number of pounds of Kisses and y is the number of pounds of Kreams. P(x, y) = 10x + 6.6y - 0.001x² -0.025y² dollars You know from previous experience that, for such a profit function, profit will be maximized at the critical point of P(x,y). (a) Determine the amounts of Kisses and Kreams that will maximize profit. pounds of Kisses pounds of Kreams (b) What is the maximum profit? (Round your answer to two decimal places.) $
20 AVC 10 MC 15 t0 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points (diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity (Pans) Total Revenue Fixed Cost Variable Cost Profit (Dollars per pan) (Dollars) (Dollars) (Dollars) (Dollars) 25.00 1,600,000 70.00 1,600,000 100.00 1,600,000 If the firm shuts down, it must incur its foxed costs (FC) in the short run. In this case, the firm's fxed cost is $1,600,000 per day. In other words, if it shuts down, the firm would suffer losses of $1,600,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's…
2. Suppose a producer's production function is F(X,L) = 3K-L2 The cost of K is 20 (r-20) and the cost of L is 80 (w = 80) The firm wants to produce 30 units of output. a. What is the cost-minimizing way for the firm to produce 30 units of output? How many units of capital and how many units of labor should be used? b. Suppose the firm has committed itself to 4 units of capital (K) and therefore is operating in the short run. What combination of inputs is the least costly way for it to produce 30 units now?
You are given the profit function: Profit = 100Q – Q2 – 100 – 0.5Q2a. In words, how would you find the quantity you should produce to maximize profits?b. What is the slope of this line at that optimal profit point, and how does its value tell you that you areat the optimal quantity?c. In words, what would the slope of that line be if you produced a quantity smaller than the optimalquantity? In words, what would the slope of that line be if you produced a quantity greater than theoptimal quantity?
Francis wants to buy some paintings for their store to make it feel more classy. Francis would need to take $20,000 out of their savings account (which earns 1% interest a year) in order to finance the paintings. At the end of the year, Francis knows they could sell the paintings for $20,000 but they would choose not to. When calculating this year's economic profit, Francis would count this as a: a. explicit cost of $20,000 and an implicit cost of $2,000. b. explicit cost of $20,000 and an implicit cost of $20,000. c. explicit cost of $20,000. d. implicit cost of $2,000.
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Graphically show the relationship between the total fixed cost, the total variable cost, and the total cost. Draw a total cost curve and total revenue curve so that at some outputs that the firm takes losses, outputs where the firm makes unnecessary profits, and where the firm makes only necessary profits. Then, pick a point where the firm is taking losses and show on the graph, the firm’s total losses. Do the same for a point (an output level) where the firm may be making unnecessary profits.
You produce widgets. Currently you produce four widgets at a total cost of $40. What is your average total cost? Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why? Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?
Fill the missing values on the table below by using the following cost formulas: Let Q be the amount of the output a firm produces. The essential cost equation: TC = FC+VC Mathematically, if Q +0, can I do as following equation or not? TC FC VC A=Average, then ATC = AFC + AVC TC ATC= : AFC = FC ; AVC = VC ATC TC,-TC: Oj - Q. AQ Output (Q) (Instructional Moddules per Average Fixed Cost (AFC) Average Total Marginal Cost Cost (ATC) Fixed Variable Total Average Costs Costs Costs Variable (MC) (FC) (VC) (TC) Cost (AVC) Month) XXXXXXXXXXX XXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX D4 B A S38 B $13 D1 C1 D2 D3 C2 C3 2 B H2 H1 H3 S33 H4 3 B L2 L1 L3 L4 54 C4 516 J3 J4 1 S72 4 B. 12 B. E1 C5 E2 E3 E4 M2 M1 C6 M3 M4 S36 S19 G3 7. B. 12 1 C7 13 14 G1 5185 C8 G2 G4
1. The total cost of producing a quantity q is C(q). The average cost a(q) is given in figure below. The following rule is used by economists to determine the marginal cost C'(q0), for any qo: Construct the tangent line ti to a(q) at qo. Let t, be the line with the same vertical intercept as t, but with twice the slope of t, . Then C'(q0), is the vertical distance shown in figure below. Explain why this rule works. $/unit a(q) t2 t1 C'(qo)

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