The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formulaCx) - 100 + 40x - 0.08.(a) Find the marginal cost function C(x).Cx) = 40 - 0.16xUse it to determine how fast the cost is going up (in s) at a production level of 100 teddy bears$ 24per teddy bearCompare this with the exact cost of produong the 101" teddy bear (in ).The cost is increasing at a rate of s 24per teddy bear. The exact cost of producing the 101" teddy bear is sThus, there is a diference of(b) Find the average cost function C, and evaluate č100) (in s).C100) -sx per teddy bearWhat does the answer tell you?per teddy bear.The average cost of producing the first hundred teddy bears is sEter an tuber

The total cost incurred by a firm operating in a market includes fixed cost and variable cost. Fixed…

The cost of producing x teddy bears per day at the Cuddly Companion Ca. is calculated by their marketing stato be given by the formula C)- 100 + 40x-0.08 (a) Find the marginal cost function C). C) = 40 - 0.16x Use t to determine how fast the cost is going up (in s) at a production level of 100 teddy bears $ 24 v per teddy bear Compare this with the exact cost of producing the 101" teddy bear (in s). The cost is increasing at a rate ofs 24 per teddy bear. The eat cost of producing the 101" teddy bear is X. Thus, there isa derence ofs1 (b) Find the average cost function C, and evalate čti00) (in s). X per teddy bear What does the answer tell you? The average cost of producing the first hundred teddy bears is: per teddy bear

The cost of producing x teddy bears per day at the Cuddly Companion Ca. is calculated by their marketing stato be given by the formula C)- 100 + 40x-0.08 (a) Find the marginal cost function C). C) = 40 - 0.16x Use t to determine how fast the cost is going up (in s) at a production level of 100 teddy bears $ 24 v per teddy bear Compare this with the exact cost of producing the 101" teddy bear (in s). The cost is increasing at a rate ofs 24 per teddy bear. The eat cost of producing the 101" teddy bear is X. Thus, there isa derence ofs1 (b) Find the average cost function C, and evalate čti00) (in s). X per teddy bear What does the answer tell you? The average cost of producing the first hundred teddy bears is: per teddy bear

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.4P

See similar textbooks

Related questions

Q: SANUMARC produces fingerlings for sell. The quantity x (kg) of these fingerlings demanded each week…

Q: The market for smart thermostats has grown increasingly competitive. Producers of smart thermostats…

A: As we know that in the long run equilibrium the form earns only zero profit That means normal profit…

Q: The “Sad Student” Company finds that it costs a total of C(q) = 9720 + 500q -1.5q2 + 0.005q3…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and…

A: Total profit = Total revenue - Total cost Revenue = Price * Quantity

Q: A computer production facility has a daily demand rate of 6 and a daily production rate of 20. Set…

A: EPQ(Economic production quantity) is an optimum quantity for a good/item that is produced by the…

Q: A manufacturer estimates that its variable cost for manufacturing a given product is given by the…

A: Marginal cost is the cost of producing an additional unit of output .

Q: Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is…

A: The term “profit” is defined as an excess of total revenue (TR) over the total cost (TC). The…

Q: A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations…

A: Demand signifies the amount of a particular commodity or service that individuals are inclined to…

Q: Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and…

A: Given : Bangladesh : Q1 = 12 – P1 P1 = 12 – Q1 Sri Lanka : Q2 = 8 – P2 P2 = 8 – Q2 C = 5 + 2…

Q: Question…

A: Price discrimination refers to the process of charging different price for the same good in…

Q: A local newspaper currently has 84,000 subscribers at a quarterly charge of $30. Market research has…

A: The measure that depicts expenses that are being incurred for carrying out day-to-day transactions…

Q: 2 The company Shirts Galore has figured its total cost of producing and selling x units of T-shirts…

A: Average cost is per unit cost of production. It is the ratio of total cost and quantity

Q: Company is effectively able to price discriminate in the two markets. What will be the total…

A: STEP 1: In monopoly market structure, the monopolist being the sole producer of the product has…

Q: A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs…

A: Break-Even Point: The cost of production of any product involves the variable cost, which is…

Q: Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x…

A: Marginal profit is the earnings derived from the addition of one extra unit in the production…

Q: "he cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their…

A: The answer to the question are as follows :

Q: Given Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q+ 800, what profit can…

A: Thank you for the question, since you have posted multiple questions. As per BNED policy we can…

Q: F

A: Profit is an income being distributed to the owner in a production process of profitable…

Q: The market for high-quality caviar is dependent on the weather. If the weather is good, there are…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: computer retailing company specializes in the sale of jump drives to community college udents. The…

A: Given : Demand Function : p=2x2+10x+1000 Average Cost Function : c¯=2x2+36x-1600-20x

Question

The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula
Cx) - 100 + 40x - 0.08.
(a) Find the marginal cost function C(x).
Cx) = 40 - 0.16x
Use it to determine how fast the cost is going up (in s) at a production level of 100 teddy bears
$ 24
per teddy bear
Compare this with the exact cost of produong the 101" teddy bear (in ).
The cost is increasing at a rate of s 24
per teddy bear. The exact cost of producing the 101" teddy bear is s
Thus, there is a diference of
(b) Find the average cost function C, and evaluate č100) (in s).
C100) -s
x per teddy bear
What does the answer tell you?
per teddy bear.
The average cost of producing the first hundred teddy bears is s
Eter an tuber

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 37x - 0.07x2. (a) Find the marginal cost function C'(x). C'(x) = (b) How fast is the cost going up at a production level of 100 teddy bears? When they produce 100 teddy bears, the production costs are increasing at a rate of x dollars per teddy bear In other words, the cost to produce the 101st teddy bear is approximately dollars (c) Find the average cost function C, and evaluate C(100). C(x) = C(100) = So when they produce 100 teddy bears, the average cost per teddy bear is x dollars. (d) Fill in the blanks: Since the marginal cost is less than the average cost per unit, increasing production from 100 teddy bears will cause the average cost per unit to decrease.
The market for high-quality caviar is dependent on the weather. If the weather is good, there are many fancy parties and caviar sells for 300 SEK per kg. In bad weather it sells for only 200 SEK per kg. Caviar produced one week will not keep until the next week, i.e. it has to be sold and consumed the same week it is produced. A small caviar producer has a cost function given by C=5q2 - 50q + 1000 where q is the weekly caviar production. Production decisions must be made before the weather (and hence the price of caviar) is known, but it is known that good weather and bad weather each occur with a probability of 0.5. a) How much caviar should the firm produce per week if it wishes to maximise its expected profit? b) Suppose the owner of the firm has a utility function of the form U(π)=√π where π is weekly profits. What is the expected utility associated with the strategy in (a)? c) Suggest a weekly production level that would give the owner higher expected utility than the…
please help
I need help please
A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs are $ 50000. They will sell the CD's for $ 79 each. Let a be the number of CD's produced. Write the total cost C as a function of the number of CD's produced. C =$ Write the total revenue R as a function of the number of CD's produced. R=$ Write the total profit P as a function of the number of CD's produced. P=$ Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Question Help: Video Submit Question
To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the break-even point b) How many t-shirts needs to be produced and sold in order to make a profit of $500?
Use the information in the graph to the right to find the values for the following at an output level of 35. 100 The marginal cost is S (Enter a numenc response using an integer.) MC ATC AVC 54 38 -- 17 35 Post
Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 60 + 0.10x + 0.001x² dollars. (a) Calculate the marginal profit function, in dollars per copy. P'(x) = (b) Compute the marginal profit, if you have produced and sold 500 copies of the latest edition. When you produce and sell 500 copies, the marginal profit is dollars per copy. Interpret the results: The approximate loss from the production and sale of the 501st сорy is dollars.
Suppose an avocado farm has cost C=0004g- 28g 1250 (ahere g is measured in bunches) The market price per bushel of avocados is $28 In the short run, thig firm's profit is N (Round your response to the nearest penny)
The “Sad Student” Company finds that it costs a total of C(q) = 9720 + 500q -1.5q2 + 0.005q3 Dollars to produce q lots of its latest board game named “Calculus Teacher Shooter”, each lot consisting of 100 games. A)Analyze the behavior of cost function B) Interpret the constant term in the expression of C(q) c)Analyze the behavior of the marginal cost as a function of the output q D)Interpret the effect of the constant term in the expression of total cost function on marginal cost function E)Analyze the behavior average cost function F)Analyze interaction of marginal cost and average cost numerically and derive the formula of this relationship with respect to relevant mathematical economics theory and interpret your formula
A computer production facility has a daily demand rate of 6 and a daily production rate of 20. Set up costs are $100 per order. They have calculated that the economic order quantity is 250 computers. Given this info, what is the best economic production quantity?
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.