The short-run cost function of a U.S. furniture manufacturer is approximately 800 C(q) = 0.55q" 1.67 At what positive quantity does the average cost function reach its minimum? The average cost function reaches a minimum at a quantity of q= 23.025. (Enter a numeric response using a real number rounded to two decimal places.) If a $600 lump-sum tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? With the tax, the average cost function reaches a minimum at a quantity of q= (Round your response to the nearest integer. Hint: the final equation will be rather complicated to solve by hand. It is recommended that you solve it using a graphing calculator.

The short-run cost function of a U.S. furniture manufacturer is approximately 800 C(q) = 0.55q" 1.67 At what positive quantity does the average cost function reach its minimum? The average cost function reaches a minimum at a quantity of q= 23.025. (Enter a numeric response using a real number rounded to two decimal places.) If a $600 lump-sum tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? With the tax, the average cost function reaches a minimum at a quantity of q= (Round your response to the nearest integer. Hint: the final equation will be rather complicated to solve by hand. It is recommended that you solve it using a graphing calculator.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 3E

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The estimated short-run cost function of a Japanese beer manufacturer is C(q) = 0.6q Average cost before the tax is minimized at a quantity of q = 1.8 + 900 q At what positive quantity does the average cost function reach its minimum? If a $700 per-unit tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? units. (Enter your response rounded to three decimal places.)
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A firm has the following information on production and costs from past data: Output (Y) 0 12 18 6 Total Cost (TC) 9 2775 5361 8199 If the total cost function is known to be TC = aY' + bY ² + kY + ƒ , and the demand for the product of the firm is Y = 320-(1/2). P answer the following: • Determine the coefficients of the cubic cost function. • Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of output and price. • What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
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A firm has the following information on production and costs from past data: Output (Y) 0 6 12 18 Total Cost (TC) 9 2775 5361 8199 If the total cost function is known to be TC=aY' + bY2 +kY + f , and the demand for the product of the firm is Y=32041/2)4, answer the following: Determine the coefficients of the cubic cost function. Derive all cost and revenue curves and the profit Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all Calculate the break even and profit maximizing levels of output and price. What is the relationship between price, marginal revenue and own price elasticity of demand at the profit maximization point.
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An ag firm is looking to produce 30 units of output. If the firm were to operate at the least-cost level of inputs to reach 30 units of output and their rental rate on capital equals $50 per hour while their wage rate equals $10 per hour, what is the total cost for the firm for operation at that level?
1. Find the cost minimizing input demand functions (x¿(w,q)) and the cost function (c(w,q)) for the following production functions: 1/3 21382 a. f(x) = x₁