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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

It is known that the firm's fixed costs = 55. The marginal cost function has the form: MC = 22-8Q + 3Q2 + 2Q3. Determine the function of the total costs of the company (TC) and calculate these costs for the release of 3 units of production.
c) The product function of a company is given by 1 v2 , where v is the number of units of fv) = the input factor. The company buys the input factor at a fixed price per unit given at 5 q =. Assume further that the company has fixed costs which in their entirety are sunk costs, and which is given by F= 100 . Show that the company's cost function is CO 20= y? +100 . d) Take as a starting point the information given in task (c), and assume that the company can sell finished goods in the market at a fixed price given by = 800 Formulate the company's profit function, and calculate which production volume maximizes corporate profits.
A firm’s estimated long-run total cost function is LRTC = 160Q - .6Q2 + .002Q3. Suppose the firm is producing 100 units of output. The cost elasticity is ____. You can use a Excel spreadsheet or otherwise to find the answer.
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.)
Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting profit is $5500
Could you solve d,e,f ? Thank you
The short run production function of a competitive firm is given The short-run production function of a competitive firm is given by f (L) = 6L2/3, where L is the amount of labor it uses. (For those who do not know calculus—if total output is aLb, where a and b are constants, and where L is the amount of some factor of production, then the marginal product of L is given by the formula abLb−1.) The cost per unit of labor is w = 6 and the price per unit of output is p = 3. (a) Plot a few points on the graph of this firm’s production function and sketch the graph of the production function, using blue ink. Use black ink to draw the isoprofit line that passes through the point (0, 12), the isoprofit line that passes through (0, 8), and the isoprofit line that passes through the point (0, 4). What is the slope of each of the isoprofit lines? (b) How many units of labor will the firm hire? (c) Suppose that the wage of labor falls to 4, and the price of output…
The following equation represents the cost structure of a firm: C= 10 + 3q. The average cost of production is
Could I have help or explanation on how to find the LTC min and L* and k*
Calculate MC when the firm produces 25 units of outputPlease answer quickly
A firm has the following Cobb-Douglas production function: q=(L^α)(K^1-α)0<α < 1 is a parameter. Suppose in the short run K = 1. The rental rate of a unit of K is $10, and the wage rate of a unit of L is $20.(a) Derive the marginal cost of the firm (expressed in terms of α and q).(b) Derive the average variable cost of the firm (expressed in terms of α and q).(c) Derive the cost function of the firm.
2. Consider the Cobb-Douglas production function q %3D d. Show that the cost function is non-decreasing in w,r and q.