Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 5P
To determine
Identify the best choice of hour.
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The cost, in thousands of dollars, of airing x television commercials during a sports event is given by
C(x) = 150 + 2,600x – 0.06x2.
(a) Find the marginal cost function C'(x).
C'(x) =
(b) Use the marginal cost to approximate the cost to air the 5th commercial. Convert your answer to dollars.
The cost to air the 5th commercial is approximately
X dollars.
(c) What is the exact cost to air the 5th commercial? Convert your answer to dollars.
The exact cost to air the 5th commercial is
x dollars.
What is the marginal cost, if the cost function given is C(Y)=6Y²?
a) Y?
b) 3Y
c) 6Y
d) 12Y
Part a,b,c
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- If the marginal cost MC = 5+4Q , and the fixed cost is 4, what is the total cost function?arrow_forwardMake sure you write out all your work with all the steps. Don't type it.arrow_forwardJenna knits scarves and then sells them on Etsy, an online marketplace. Let C(x) =4x+20 represent the cost C in dollars to produce 1 to 6 scarves. A.) Create a table to show the relationship between the number of scarves x and the cost C. B.) What are the domain and range of C? C.) What is the meaning of C(3)? D.) What is the meaning of the solution to the equation C(x) =40?arrow_forward
- Consider the following cost function. a. Find the average cost and marginal cost functions. b. Determine the average and marginal cost when x = a. c. Interpret the values obtained in part (b). C(x) = 0.04x³ +0.4x² + 30x+130, 0≤x≤ 1500, a = 1000 a. The average cost function is C(x)=arrow_forwardSuppose that the cost function for a commodity is C(x) = 90 + x? dollars. (a) Find the marginal cost at x = 7 units. MC(7) = [ Tell what this predicts about the cost of producing 1 additional unit. The cost to produce the 8th unit is predicted to be $ (b) Calculate C(8) - C(7) to find the actual cost of producing 1 additional unit. $4arrow_forwardFind the cost function for the marginal cost and fixed cost. Marginal Cost dC dx = +40 80 Fixed Cost (x = 0) $2,500 C =arrow_forward
- Cost is in dollars and x is the number of units. Find the marginal cost function. MC for the given cost function. C(x) = 700 + 5x + 0.04x^2 MC =?arrow_forwardConsider the following cost function: C(q) = 100 + 10q+q² (i) What are the formulas for the Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Total Cost (ATC) and Marginal Cost? (ii) At what output level is Average Total Cost (ATC) lowest? What is the minimum Average Total Cost (ATC)? (iii)arrow_forwardSuppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What is the marginal cost of producing 10 units?arrow_forward
- If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? • What is the average cost? What is the marginal cost? • When q=5, compare the average cost and the marginal cost. Which one is larger? What is the value of S? Does it tell you anything about the economies or diseconomies of the scale of the production?arrow_forwardGive the formulas for average fixed cost (AFC), marginal cost (MC), average variable cost (AVC), and average cost (AC) if the cost function is: 26.00 24.00- C=6+13q. 22.00 Average fixed cost is: 20.00- 18.00 AFC = * 16.00 Marginal cost is: 14.00- MC = 10.00 Average variable cost is: 8.00 6.00- AVC = 4.00 Average cost is: 2.00 0.00- AC =D Quantity, q. Units per day 1.) Use the line drawing tool to draw the marginal cost curve. Label this line 'MC'. If you are viewing this on a test or quiz, you must click the graph to enable the drawing tools. 2.) Use the 3-point curved line drawing tool to draw the average cost curve for quantities q= 1, q = 2, and q = 3. Label this curve 'AC'. Carefully follow the instructions above, and only draw the required objects. étv 20 MacBook Air S0 DII F3 F4 FS F6 F7 FB F9 2$ & 3 4 7 8 9 { [ W E R T Y U P D F G H J K ? C V N command option .. .. Cost per unit, $ * 0Oarrow_forwardIf C(x) the total cost function of producing x items, then the marginal cost at x = a, given by C'(a), is the approximate cost to produce the (a + 1)st item. If the cost of producing x golf carts is C(x) = 0.001x³ + 0.2x2 + 39x + 200 what is the cost of producing 20 golf carts? C(20) = $ What the marginal cost when x = 20? C'(20) = $arrow_forward
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