A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Evaluate the average cost and the marginal cost at the maximising production level
Q: Complete the following table, given the information presented on the graph. Result Per-unit tax…
A: It can be defined as the extra profit a producer can get by selling the commodity to the consumer.…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Gains from Trade are defined as the output that is obtained by subtracting the consumption before…
Q: According to Filippov and Settles (2013), 4 different innovation-related internationalisation…
A: It can be defined as a process in the process a company or organization expands its services,…
Q: Evaluate the size of the insurance and pensions sectors in Zambia in terms of the number of market…
A: Insurance refers to a settlement among an individual or entity (the policyholder) and an coverage…
Q: Role of Economics in Shaping Public Policy - Analyze how economics plays a vital role in shaping…
A: Since the second part of the question is subjective, according to the guidelines, only the first…
Q: A monopoly has two production plants with cost functions C₁ = 40 + 0.2Q₁² and C₂ = 50 + 0.1Q2². The…
A: Monopoly refers to the market where only single firm exists. A firm has power to set the price.…
Q: Consider an economy with two periods (interpreted as “when young” and “when old” periods) and two…
A: An Edgeworth Box is a graphical representation used in economics to illustrate the allocation of…
Q: What are the expected and the empirical relationships between economic activity and security…
A: Economic activity is defined as the production, distribution, and consumption of goods and services…
Q: Consider the market for computers. The current price of dell computer is $1200.00. Two consumers,…
A: Total surplus refers to the sum of consumer and producer surplus. Consumer surplus refers to the…
Q: A small college is trying to predict enrolment for the next academic year. The vice president for…
A: To maximize revenue, effective revenue management requires determining the right combination of…
Q: Explain the links between an expansionary monetary stimulus and the foreign exchange rate.
A: The value of one currency in another currency's terms is known as the nominal exchange rate. It also…
Q: Sylvester and Rachel live together on an island with two goods, food and shelter. Food is a private…
A: The quantity of shelter that Sylvester will buy is determined by the point where his marginal rate…
Q: The following graph represents the demand and supply for blinkies (an imaginary product). The black…
A: It can be defined as a major source of income for the government of any country by which the…
Q: What is the true income tax rate on interest income if the nominal interest rate is 8 percent a…
A: Income tax is crucial because it is governments' principal source of fiscal revenue, enabling them…
Q: Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new…
A: Given:First cost=$300000Annual maintenance=$5000Reveneu at year 1=$80000 and it increases by $10000…
Q: Musashi owns and operates a hot dog stand in downtown Chicago. In order to operate his hot dog…
A: Fixed and variable costs stand as fundamental principles in the realm of business accounting. These…
Q: The Upstream Nukem Co. uses a technology that produces pollutants as a by-product. The company dumps…
A: Socially optimal level of pollutant is the one where the marginal social benefit occurring from the…
Q: The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well…
A: A measure that quantifies how sensitive the quantity (Q) demanded of a product or service (here,…
Q: 8. Which of the following is included in the consumption component of U.S. GDP? (a) purchases of…
A: The consumption component of a nation's GDP (Gross Domestic Product) measures the total value of…
Q: Suppose there are two distinct industries - (1) the fast-food industry and (2) the sporting goods…
A: The organizational characteristics and competitive environment of a market are termed 'market…
Q: READ THEN ANSWER THE QUESTION : THE QUESTION : What is the shape of Starbucks’ demand curve? In…
A: Price elasiticity of demand (Ed) is a microeconomic tool (or instrument) to gauge the price…
Q: The average product of labour is the output per employee often called labour productivity. Use the…
A: The average product of labor (APL) is a concept used in economics to measure the productivity of…
Q: has an absolute advantage in the production of squash, and David's opportunity cost of producing 1…
A: Given,Squash(Pounds per acre)Maize(Pounds per acre)David287Morgan186
Q: Consider a company that operate a pulp mill whose sulphurous effluent and wood waste materials…
A: The given problem is to effectively handle pollution externalities while minimizing transaction…
Q: a. What are the Nash equilibria of the game? Is this game a realistic one for an organisation?…
A: Nash Equilibrium describes a situation where all players in a game have chosen their best strategy,…
Q: Use the profit maximising condition to advise on the quantity that the firm should produce and the…
A: Monopoly is a market situation where there is a single seller. The monopolist is the price maker.…
Q: 2) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or…
A: "As per our policy, we can provide you with the solution to the first three sub-parts. Kindly repost…
Q: From the following information, calculate GDp, private disposal income and private saving:…
A: We are given the following information:
Q: Instead, suppose the government taxes bucket hats. The following graph shows the annual supply and…
A: An excise tax when collected from sellers shifts the supply curve upward by the amount of the tax.…
Q: As the tax per case increases, deadweight loss
A: Tax is collected by the government from every individual in an economy to generate revenue for…
Q: For each customer load, calculate both the marginal cost and the average cost. Then answer the…
A: Given,CustomerTotal costMarginal costAverage cost13023434245457069071148142
Q: Identify a news item that you would like to discuss. This could range from traditional news headline…
A: According to the guidelines, direct URL links to articles cannot be added to the answer. Therefore,…
Q: How does the presence of asymmetric information in the used car market impact the behavior of…
A: Asymmetric information refers to situations where one party in a transaction has more or better…
Q: Taxes and subsides work together by____ the price of polluting technology or goods and___ the price…
A: Taxes and subsides work together by____ the price of polluting technology or goods and___ the price…
Q: Graphically illustrate the impact of a decrease in the price of used car sales on the market for new…
A: It can be defined as the amount of different commodities that a buyer wants to purchase and the…
Q: Subject: History of Economic Analysis Compare the concepts and contents of individual and society in…
A: It can be defined as a thought of economics that helps people to understand the meaning of market…
Q: #HOLDING SACERD PELL - Wz ESTHE dogth Canpark skpaty Cl VELLLL 102 S har 107 AUT The figure shows…
A: Household income is an economic indicator that measures the total amount of money earned by all…
Q: Which one (1) of the following is the subject of a Statutory Condition in a Property policy? OA)…
A: Misrepresentation: Misrepresentation is the act of providing false, incorrect, or misleading…
Q: For each of the below production functions, find the minimum cost of producing 2 units of output…
A: The input prices for producing 2 units of output are given as 2 and 5. Minimum cost needs to be…
Q: The Phillips Curve. "As long as we do not mind having high inflation, we can achieve as low a level…
A: A. W. Phillips, who investigated the relationship between the rate of inflation and the rate of…
Q: The government is considering levying a tax of $25 per unit on suppliers of either windbreakers or…
A: An excise tax when collected from sellers shifts the supply curve upward by the amount of the tax.…
Q: = Consider the following 2 person, 1 good economy with two possible states of nature. There are two…
A: "As stated by client, I am providing solution to only "Define equilibrium condition" part". The…
Q: Based on the information about individuals and their incomes in two areas below, Area A Individual…
A: The Gini Coefficient highlights the presence of a high percentage of inequality in the economy. It…
Q: What was the relationship in these years between the activism of the national government and…
A: Important turning points in Country U history occurred in the years 1763, 1776, 1787, and 1800, when…
Q: PRICE (Dollars per slice) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 + 0.75 + 0 Price…
A: Producer surplus is difference between price seller is receiving and the price which he is willing…
Q: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is…
A: It can be defined as a form of cash flow in which the series of the cash by a constant amount at the…
Q: Owner-supplied labor is a cost that is usually: included in both accounting costs and economic…
A: Labor refers to the physical and mental effort exerted by individuals in various productive…
Q: The tarrif's revenue effect (the import tariff multiplied by the quantity of oil imported) can be…
A: A tariff is a tax imposed by one country on the goods and services imported from another country to…
Q: Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey…
A: Government imposes taxes on various harmful materials with a view that higher prices could…
Q: Game theory is: a) a view on the development of children's games and toys. b)the analysis of…
A: Game theory refers to a branch of mathematics and economics that studies strategic decision-making.…
Answer the given question with a proper explanation and step-by-step solution.
A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20
a. Evaluate the average cost and the marginal cost at the maximising production level.cise 2
Step by step
Solved in 3 steps with 1 images
- A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find the profit function. b. Estimate the marginal cost function. c. Obtain the production that maximizes the profit. d. Evaluate the average cost and the marginal cost at the maximising production level.cise 2b Now suppose Q = 2L +3K. Let the market price of L be w = 5 and the price of K be r = 4. Let both L and K can vary with production. Compute the input demand functions as a function of Q. (4 Points) c Calculate the marginal cost and average cost of the above function in subpart (b). Show them graphically. At what prices of textile will the producer shut down production. (3 Points) d Now suppose Q = 10LK. The market prices of inputs are as in subpart (b) above. Compute the input demand functions as a function of Q. Find the optimal production when the price of textile is $10 per yarn. (5 Points)The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 37x - 0.07x2. (a) Find the marginal cost function C'(x). C'(x) = (b) How fast is the cost going up at a production level of 100 teddy bears? When they produce 100 teddy bears, the production costs are increasing at a rate of x dollars per teddy bear In other words, the cost to produce the 101st teddy bear is approximately dollars (c) Find the average cost function C, and evaluate C(100). C(x) = C(100) = So when they produce 100 teddy bears, the average cost per teddy bear is x dollars. (d) Fill in the blanks: Since the marginal cost is less than the average cost per unit, increasing production from 100 teddy bears will cause the average cost per unit to decrease.
- Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly ElasticA firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitThe figure shows a bakery's marginal and average cost curves, and its isoprofit curves. The bakery is a price-taker in a large bread market. Suppose the current market price is P₁. Based on this information, which of the following statements is correct? Price, Cost €6 (5 20 40 60 80 Quantity MC hoprofits AC 100 120 140 160 180 number of loaves Select one or more: a. The bakery would be better off raising its price up to its AC level. O b. The bakery would be minimising its loss at A. Oc. If the bakery is not yet in the market then it would not enter the market. d. If the bakery is already in the market, then it would always immediately exit the market because it is making a loss.
- The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ NumberDaniel's Artworks faces a short-run total cost of production given by: TC = Q³ – 12Q² + 100Q +1000, where Q is number of artworks produced per day. Daniel's marginal cost of producing artworks is: 3Q² - 24Q + 100. If the artworks sell for $60 per artwork, how many artworks should Daniel produce?11.2 The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 36x − 0.01x2. (a) Find the marginal cost function C'(x). C'(x) = Use it to determine how fast the cost is going up (in $) at a production level of 100 teddy bears. $ per teddy bear Compare this with the exact cost of producing the 101st teddy bear (in $). The cost is increasing at a rate of $ per teddy bear. The exact cost of producing the 101st teddy bear is $ . Thus, there is a difference of $ . (b) Find the average cost function C, and evaluate C(100) (in $). C(x) = C(100) = $ per teddy bear What does the answer tell you? The average cost of producing the first hundred teddy bears is $ per teddy bear.
- A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s production function is Q = 5*L.6*K.5. Total Cost is TC = PL*L + PK*K = $12*L + $6*K. The objective is to maximize Profit. Find the Profit-Maximizing output. At the profit-maximizing solution, K =?The inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE?, with a, b representing positive constants and E is fishing effort. Total cost is TC(E)= cE,with c being the unit cost of effort. Total revenue is TR(E) = pH(E), with p being the constant price of fish. Explain why higher levels of effort (E) beyond a certain point are associated with reductions in long-run total revenue (TR). Explain why it generally is not efficiency- maximizing for society to supply the level of fishing effort that maximizes the sustainable yield.
