Question
In: Economics
A price-taking firm's variable cost function is VC=2Q3, V C = 2 Q 3 , where...
A price-taking firm's variable cost function is
VC=2Q3,
V
C
=
2
Q
3
,
where Q is its output per week. It has a sunk fixed cost of $864
per week. Its marginal cost is
MC=6Q2.
M
C
=
6
Q
2
.
a. What is the firm’s supply function when the $864 fixed cost is
sunk?
Instructions: Enter your answer as a whole number.
Q = (P/6)0.5 for P ≥ $.
b. What is the firm’s supply function when the fixed cost is avoidable?
Instructions: Enter your answer as a whole number.
Q = (P/6)0.5 for P ≥ $.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
A price-taking firm's variable cost function is VC=2Q3, V C = 2 Q 3 , where...
A price-taking firm's variable cost function is
VC=2Q3,
V
C
=
2
Q
3
,
where Q is its output per week. It has a sunk fixed cost of $2,916
per week. Its marginal cost is
MC=6Q2.
M
C
=
6
Q
2
.
a. What is the firm’s supply function when the $2,916 fixed cost is
sunk?
Instructions: Enter your answer as a whole number.
Q = (P/6)0.5 for P ≥ $.
b. What is the firm’s supply function...
A price-taking firm's variable cost function is VC=3Q3, where Q is its output per week....
A price-taking firm's variable cost function is
VC=3Q3,
where Q is its output per week. It has a sunk fixed cost
of $750 per week. Its marginal cost is
MC=9Q2.
a. What is the firm’s supply function when the $750 fixed cost is
sunk?
Instructions: Enter your
answer as a whole number.
Q =
(P/9)0.5 for P ≥ $.
b. What is the firm’s supply function when the fixed cost is
avoidable?
Instructions: Enter
your answer as a whole...
Sophie's given utility function is U(V, C) = VC + V where V = # of...
Sophie's given utility function is U(V, C) = VC + V where V = #
of visits per month and C = # of minutes per month (hundreds). V =
$1 and C = $4 and M = $44.
a) Calculate the equation that represents the consumers demand
for number of visits (V).
b) Say that V increases to $16. Calculate the new equilibrium.
Compute Sophie's substitution and income effect and represent it
within a diagram.
A monopoly faces the following demand function: P=1200-Q. Variable production costs are VC(Q)=2Q^2.
A monopoly faces the following demand function: P=1200-Q.
Variable production costs are VC(Q)=2Q^2. The firm also pays $50000
in costs that do not depend on production (even if q=0).What are the sunk costs, the fixed (but not sunk) costs, and
the variable costs for this firm?Find the profit maximizing quantity and price, as well as
profits.Repeat question 1 above if the costs of the firm are now 0 if
it does not produce, but 2Q^2+150000 if it produces any positive...
A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product.
A firm's total cost of producing Q units of output is C (Q) =
79 + 20Q. The inverse demand curve for the firm's product is P(Q) =
100-Q, where P denotes the price of the product. a) If the price of
the product is set equal to the firm's marginal cost, what profit
will the firm earn? b) If the firm charges a two-part tariff (a
fixed fee plus a per unit price), how large is the fixed fee? How
large...
1- The Variable Cost, (VC), of making 10 fidgets is 100, the Variable Cost, (VC), of...
1- The Variable Cost, (VC), of making 10 fidgets is 100, the
Variable Cost, (VC), of making 11 fidgets is 110, What is the
Marginal Cost, (MC), of making the 11th fidget?
2- The Total Cost, (TC), of making 10 widgets is 490 , the Total
Cost, (TC), of making 11 widgets is 550,What is the Marginal Cost,
(ATC), of making the 11th widget?
3- The Total Cost, (TC), of making 10 widgets is 490, the Total
Cost, (TC), of...
QUESTION 3 A firm's production function is Q = 2 KL, with MP L = 2K...
QUESTION 3
A firm's production function is Q = 2 KL, with
MP L = 2K and MP K = 2L. The wage rate is $4
per hour, and the rental rate of capital is $5 per hour. If the
firm wishes to produce 100 units of output in the long run, how
many units of K and L should it employ?
a.
K = 6.33; L = 7.91.
b.
K = 2; L = 2.
c.
K = 4;...
The firm's production function is: q = K0,5 L0,5 and the total cost function is 10K...
The firm's production function is: q = K0,5
L0,5 and the total cost function is 10K + 10L = 10000
where q: output K: capital and L: labor
a. Calculate how many K and L are used for maximum production in
2 ways.
b. Draw the solution to the problem in graphic form with
isoquant and isocost (TC) curves.
c. Draw it like No.2, add the following conditions in the same
graph:
- if the price of L increases to...
A firm's total cost of producing Q units of output is C (Q) = 79 +...
A firm's total cost of producing Q units of output is C (Q) = 79
+ 20Q. The inverse demand curve for the firm's product is P(Q) =
100-Q, where P denotes the price of the product.
a) If the price of the product is set equal to the firm's
marginal cost, what profit will the firm earn?
b) If the firm charges a two-part tariff (a fixed fee plus a per
unit price), how large is the fixed fee?...
A firm's total cost of producing Q units of output is C (Q) = 200 +...
A firm's total cost of producing Q units of output is C (Q) =
200 + 50Q. The inverse demand curve for the firm's product is P(Q)
= 80-Q, where P denotes the price of the product.
a) If the price of the product is set equal to the firm's average,
how much will the firm produce? (5 points) Hint: choose the larger
of the two numbers. Show your work.
b) If the firm is under marginal cost pricing, how...
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