Don't use Ai and chatgpt .Answer in step by step with explanation. The derivative, dAC(Q)/dQ = (1/Q2) (Q(dC/dQ) - C(Q)), illustrates thatMultiple ChoiceMC(Q) AC(Q), that is, the average costs decrease as output increases.MC(Q) AC(Q), that is, the average costs decrease as output increases.MC(Q) AC(Q).MC(Q) AC(Q), that is, the average costs increase as output increases.

Marginal cost (MC) relates to average cost (AC), and it gives the derivative of the average cost…

Answered: The derivative, dAC(Q)/dQ = (1/Q2)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q. The Ali Baba Co. is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q = 112,000 – 500P + 5M Where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers’ income per capita. The estimated average variable cost function for Ali Baba’s carpets is AVC = 200 – 0.012Q + 0.000002Q2 Consumer’s income per capita is expected to be $20,000 and total fixed cost is $100,0000. a. How many carpets should the firm produce to maximize profit? b. What is the profit-maximizing price of carpets? c. What is the maximum amount of profit that the firm can earn selling carpets? d. Answer parts a through c if consumers’ income per capita is expected to be $30,000 instead.
Q. The Ali Baba Co. is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q = 112,000 – 500P + 5M Where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers’ income per capita. The estimated average variable cost function for Ali Baba’s carpets is AVC = 200 – 0.012Q + 0.000002Q2 Consumer’s income per capita is expected to be $20,000 and total fixed cost is $100,0000. a. How many carpets should the firm produce to maximize profit? b. What is the profit-maximizing price of carpets? c. What is the maximum amount of profit that the firm can earn selling carpets? d. Answer parts a through c if consumers’ income per capita is expected to be $30,000 instead Please answer d only.
For the table given below. Calculate TC, AFC, AVC and MC and show diagrammatically. Q L TFC ($) TVC($) 19.53 1 200 50 38.16 2 200 100 55.90 3 200 150 72.80 4 200 200 104.17 6 200 300 132.50 8 200 400 157.99 10 200 500 191.36 13 200 650 219.44 16 200 800 249.61 20 200 1000 277.32 25 200 1250 295.76 30 200 1500
PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. (i) Write the equations of the firm’s costs, as a function of Q (ii) Average Total Cost ATC (iii) Average Variable Cost AVC (iv) Average Fixed Cost AFC a. Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? b. What is the shutdown price and quantity for this firm? c. Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above. d. Given the market price of Pak$ 50 (i) how many units should the firm produce? (ii) how many firms are competing in this market in short-run? (iii) How many firms will be in the industry in the long-run? e. How do you interpret the profit or loss condition of PakPerfect?…
R(x)= -0.956x^2 + 157x C(x)= 50.8x + 73.4 P(x)= R(x) - C(x) P(x)= -0.956x^2 + 106.2x - 73.4 What are the break-even points? What is the profit at the break-even points? What number of widgets sold will yield positive profit? Determine the number of widgets that you should try to sell in order to maximize profit. What is the maximum profit?
600 550 500 450 400 360 350 300 270 250 200 150 100 50 0 ATC> MC c) 20 d) 25 e) 45 f) 100 g) 120 h) 160 a 6 10 20. What is the Marginal Cost at Q=6? a) 7.50 b) 12 b 20 Ha 30 ATC=MC TC ATC < MC 37 40
The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable cost per yard of denim is $0.35. Price is related to demand, according to the following linear equation: v = 17,000 - 5,666p Develop the nonlinear profit function for the textile mill and determine the optimal price, the optimal volume, and the maximum profit per month.
According to the table below, what is the average total cost of producing 160 units of output?
KidzPoses Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. James, who owns and runs KidzPoses, expects to encounter an average of eight customers per day, each with a reservation price (shown in the following table). Assume James has no fixed costs, and his cost of producing each portrait is $12. Customer Reservation Price ($ per photo) 1 50 2 46 3 42 4 38 5 34 6 30 7…
Hi there, just looking for the answer to D using the information from first picture. Thanks.
An Accra Chemical Factory discharges waste products into a river. These wastes kill many tilapia that are swimming upstream to spawn. While there will no doubt be other ecological damages from the chemical effluent, we wish to focus on those of the fishery. Let E be the tonnes of chemical effluent discharged per month. The equation for Marginal Damages (MD) is MD = 6E. The firm’s Marginal Abatement Cost (MAC) is given by MAC = 800 – 10E. a. Sketch the MD and MAC functions graphically on the same axes. b. Suppose E0 is the point where MAC = 0. Find the total damages (TD) to fishery by the factory per month.
i need M,N,O subparts solution of this question

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