The table below shows the long run total cost function for a firm. The firm's cost function exhibits:Quantity of Output02345Odiseconomies of scaleTotal Cost ($)O constant returns to scaleO economies of scaleO decreasing marginal costO increasing marginal cost1020304050K

Economies of scale occur when the average total cost decreases as output increases. Diseconomies of…

Answered: The table below shows the long run…

The table below shows the long run total cost function for a firm. The firm's cost function exhibits Quantity of Output Total Cost ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose a firm has following total cost function: TC=(2Q+4)(Q+3)+240. Find the fixed cost (FC),…

A: Given, TC=(2Q+4)(Q+3)+240 Total cost is defined as the total expenses that a company or firm has to…

Q: Distinguish between Fixed Costs and Variable Costs and their implications for the shape of firms’…

A: Fixed Costs : These are the costs which do not change or depend on the level of production . For…

Q: 8.3 The long-run total cost function for a firm producing skateboards is TC=q^3-30q^2+350q, where q…

A: a. Increasing rate of growth as output increases.b. U-shaped graph for the average cost function.…

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Output(Q)=100 units AVC(Q=100)=$25 ATC(Q=100)=$32 TFC(Q=100)=? We know that: Average Fixed Cost is…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: In the following table, complete the marginal cost, average variable cost, and average total cost…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Answer questions 5-7 based on the following information: Suppose that the production function for…

A: Given:F(L,K)=L14K12w=2r=4 FC= $100

Q: The above cost curves are for a firm producing flour, which is measured in pounds. 1. What is the…

A: A cost curve is a graph that shows the costs of production as a function of the overall quantity…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: Total Cost: The term total cost refers to the sum of all the costs that are used in the production…

Q: Use the table to answer the question below: Quantity Total Cost 0…

A: Marginal cost is the additional cost incurred when the additional unit of output is produced.

Q: A manufacturing firm has a total cost curve : TC= 0.25Q^3 - 6Q^2 + 50Q + 240, and a marginal cost…

A: It has given, TC=0.25Q3-6Q2+50Q+240MC=0.75Q2-12Q+50Now,MC'(Q)=1.5Q-12=0Therefore,1.5Q=12Q=8Now, for…

Q: Given the information from the graph below, draw the cost curve of the firm showing the minimum…

A: At Q1= 100 (L,K) = (25,25) Q2= 200, (L,K) = (50,50) Q3= 300, (L,K) = (75,75) At cost minimization…

Q: What is the marginal cost of producing the third unit of output? (Correct answer is $24)

A: Marginal cost is the additional cost that is incurred on production of an additional unit of output.…

Q: Identify the economies of scale where the producer operates. Show cost curves of the firm…

A: The economies of scale means when the level of production or output is raised, the average cost of…

Q: is given ost for producing 15 units of outpu" s 3000 and for 16 units is 3,500 "ind the value of…

Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…

A: Marginal product of labor is the additional output produced by employing an additional unit of…

Q: g) What will be the firm’s total fixed costs?

A: Fixed cost is that component of total cost that is independent of the output level.

Q: Referring to question 2: Suppose the government imposes a $40 price floor. If this price floor is…

A: In the above diagram, the equilibrium price is $30 and the equilibrium quantity is 300 units at a…

Q: The cost function of a UC Irvine donut shop is: C(q)=10+ 10q + q?, so the marginal cost function is:…

A: Average cost or unit cost is equal to total cost divided by the number of units of a good produced:…

Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…

A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000

Q: Section 2: Long Answer 1. A firm has technology described by q = KL. Set out the firm's long-run…

A: Cost = w*L + r*K where w is wages and r is rent for capital

Q: A firm with fixed costs produces at the lowest point on its U-shaped average variable cost curve. If…

A: Fixed costs are business expenses that are not dependent on the level of goods or services produced…

Q: Macmillan Learning Suppose Ralph own a chicken processing plant with the total cost function shown…

A: 1. Determine Ralph's Fixed Cost: The fixed cost is the cost incurred when no output is produced…

Q: Consider the table below showing the costs for a firm. Quantity Fixed Cost Variable Cost Total Cost…

A: Total cost is the sum of fixed and variable cost. Fixed cost remains same at all level of output.…

Q: A firm's total short-run cost function is C(y)=5y3−12y2+110y+9 . What is the average variable…

A: The total cost is C(y)=5y3−12y2+110y+9 Fisxed cost is the constant term in the C. FC=9 VC=C-FC…

Q: construct two graphs lined up one on top of the other. The upper graph should reflect a total cost…

A: Total cost is the sum of fixed cost and variable cost.

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

Q: y has fixed costs of $10 per day and variable costs of $ 1 per loaf . Its oven can handle up to 50…

A: Total cost = Fixed Cost + Variable cost Average fixed cost = Fixed CostQuantity Average Variable…

Q: Month (m): 4 Day (d): 1 Use the two numbers…

A: Fixed cost is that cost which are not depend on the quantity. It's remains same at any output level.…

Q: t does the Long Run Average Cost curve depict? a) It depicts the relationship between Average…

A: Average cost of production is the per unit cost of production. AC = TC/Q The minimum efficient scale…

Q: In the graph below, which depicts the relationship between units produced and total cost, the dotted…

A: The measure that depicts expenses being incurred by a business for carrying out its day to day…

Q: The cost function of a firm is c(y) = 3y2 + 6y + 5. 1. Find the Average variable and Marginal…

A: Average variable cost will be computed by dividing the total variable cost by the quantity. The…

Q: The table below represents incomplete information on the short-run production costs for a firm,…

A: Cost refers to the monetary payment made by a business in order to produce any good or service. It…

Q: Suppose a firms marginal cost of production are constant at 100 per unit. And the total fixed cost…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost does not depend on output…

Q: 14. The research department of Acme, Inc. has determined the marginal cost function for one…

A: The marginal cost of production refers to the incremental cost incurred in the production of an…

Q: The following incomplete table describes the costs faced by a firm as it produces an increasing…

A: Marginal cost is the cost incurred in making or procuring an additional unit of output. For…

Q: Provide a diagram that illustrates, for the short-run analysis, the average cost function, the…

A: The firms, and businesses operate with the motive of enhancing their profits, and minimizing their…

Q: Given a firm's cost function C=F(x) = ax +bx+ d: a. Find the firm's Average cost function (A(x) and…

A: C=F(x)=ax3+bx+d

Q: Use the table below to answer the following question. Units Total Fixed Cost Total Variable of…

A: Marginal cost eventually we can say that it is the actual change in the value of the total cost…

Q: Explain the following statement by using a graphical analysis: “The long-run average cost curve is…

A: Average cost is the cost of producing one unit of goods and services . It is calculated by dividing…

Q: Calculate Marginal cost when the total cost changes from 15 to 45 and the quantity changes from 10…

A: # Marginal cost measures the change in total cost when the quantity changes. MC = change in TC /…

Question

The table below shows the long run total cost function for a firm. The firm's cost function exhibits:
Quantity of Output
0
2
3
4
5
Odiseconomies of scale
Total Cost ($)
O constant returns to scale
O economies of scale
O decreasing marginal cost
O increasing marginal cost
10
20
30
40
50
K

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

Please complete the table with formula.
Classify the following milk bar short-run costs as fixed cost or variable cost Milk truck Fruit freezer Cost of milk sold each day ii) Assuming the following are the costs of your milk bar after the end of the second week answer the question below based on the following information. Fixed cost increased from 100 to 150 Variable cost increases from 220 to 300 Milk output increases from 450 to 620 a) What is the average total cost during the second week. Show your work b) What is the marginal cost. Show your work
The cost function of a firm is c(y) = 3y^2 + 6y + 5.1. Find the Average variable and Marginal Cost curves of the firm.2. What is the quantity level where the average variable cost is minimized?
K A cereal factory has weekly fixed costs of $22,000. It costs $1.26 to produce each box of cereal. A box of cereal sells for $4.06. Find the rule of the cost function c(x) that gives the total weekly cost of producing x boxes of cereal. OA. c(x)=1.26x OB. c(x)=22,000+ 1.26x OC. c(x)=22,000 +4.06x OD. c(x)=22,000+ 2.8x
Find the total cost function C(Q) for each firm
Use the cost table below to find the following marginal costs. Output quantity Total variable Total fixed Total cost cost cost 20 80 60 140 40 140 60 200 60 210 60 270 80 300 60 360 100 420 60 480 120 600 60 660 140 840 60 900 What is the marginal cost when output is 20? $ What is the marginal cost when output is 80? $ What is the marginal cost when output is 120? $ |
Suppose Nittany Bakery rents a building for $120 per day, and they can hire workers for $75 per day. The short run labor and output (quantity of scones) information is listed below. Fill in the columns for total cost and marginal cost. (Note: You may need to make columns for fixed cost (FC) and variable cost (VC) on a piece of scrap paper, which will make it easier to find total cost (TC).) Do not enter any dollar signs, and if necessary, round to two decimal places. Short Run Labor, Output, and Costs Labor (L) Output (Q) Total Cost (TC) Marginal Cost (MC) 00 -- 14 212 3 24 440 5 60 675 7 84
fixed cost is the same at each output level except when no output is produced. when a firm produces no output,there are no fix cost. true or false? explain
A garment factory has total fixed costs of $300,000 per year. The firm’s average variable cost is $80 for 10,000 shirts. At that level of output, the firm’s average total costs equal?
Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may experience economies of scale.
A company's short run total cost function is given by TC(q) = 3.0q^(3) - 1.0q^(2) + 3.6q + 3. Determine the lowest quantity this company is willing to produce (shutdown point). Please use 2 decimals in your answer.
Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. (Hint: Determine the total fixed cost first.) Instructions: Enter your answers rounded to two decimal places. Total Average Fixed Cost Average Total Cost Marginal Cost Output Variable Total Cost Cost 1 $10.00 $9.76 $9.76 $19.76 2 $19.06 $14.53 $9.30 $29.06 3 $3.33 $12.63 $37.90 4 $2.50 $36.31 $11.58 $8.41 $46.31 $2.00 $44.30 $10.86 LO