The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Question

Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

Answer 1

Question

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

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Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation. 2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.

Supply and demand functions show different relationship between the price and quantities suppliedand demanded. Explain the reason for that relation and provide one reference with your answer.

Answer 2

Question

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 6

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 7

Chapter 7, Problem 4.10P

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 8

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 9

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 10

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 11

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 23

Ch. 7 - Prob. 1.1P Ch. 7 - Prob. 1.2P Ch. 7 - Prob. 1.3P Ch. 7 - Prob. 1.4P Ch. 7 - Prob. 2.5P Ch. 7 - Prob. 2.6P Ch. 7 - Prob. 3.7P Ch. 7 - Prob. 3.8P Ch. 7 - Prob. 3.9P Ch. 7 - Prob. 4.10P

The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Concept explainers

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Chapter 7 Solutions

The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Concept explainers

To Determine: The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine: The most efficient scale of production when Q= 75 is to be determined. Concept Introduction: Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine: The long run average cost is to be traced on the diagram. Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Chapter 7 Solutions

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.