Picture Tools16285711986112063eel9ba0 69816244 (Read OnlySmanReferencesMailingsReviewViewFormatPicture Shape YBring to FrePicture BorderSend to BacPositionPicture EffectsText WrapprPicture StylesArrange2.6Question 2.1. Widget factory Inc. in Wisconsin has the following production function:F(L,K) = 2L/2 K/2L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 andthey rent capital at $25/hour. Since this is a competitive market, the factory output the factory getsper is output is $50 per unit.Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workerswould Widget Factory Inc employ? What is their profit rate?Question 3.

Given production function :- F(L, K) = 2L1/2 K1/2 w = $30 r = $25 P = $50 K0 = 900 (fixed) So the…

Answered: Question 2. 1. Widget factory Inc. in…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 2SQP

See similar textbooks

Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Define the following
Bus Econ 4.2.11 Question Help v A juice company has found that the marginal cost of producing x pints of fresh-squeezed orange juice is given by the function below, where C') is in dolliars. Approximate the total cost of producing 276 pt of juice, using 3 subintervals over 0,276] and the left endpoint of each subinterval C'-0.000007x-0.0035x+4, for xs350 The total cost is about $ (Round the final answer to the nearest oent as needed. Round all intermediate values to the nearest thousandth as needed) Enter your answer in the answer box and then click Check Answer. Check Answer ll parts showing Clear Al 2AM Start P Type here to search 同 DELL F10 F4 %23 6. R
IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gao
What shapes would you generally expect each of the followingcost curves to have: fixed costs, variable costs, marginal costs,average total costs, and average variable costs?
Consider this statement: “A firm should increaseoutput when it makes a profit.” Do you agree ordisagree? Explain.
Suppose your dad owns a voodworking shop where he makes handmade benches. The following graph shows the marginal cost (MC) and average variable cost (AVC) for your dad's business. 100 90 80 MC 70 60 AVC 50 40 30 20 10 10 20 30 40 50 60 70 80 90 100 OUTPUT (Benohes per month) For each of the prices in the following table, use the graph to determine the number of benches your dad would produce in order to maximize his profit. Also, for each of the prices, indicate whether the firm will produce or shut down (or be indifferent between the two) in the short run. Price Output (Dollars per bench) (Benchs per month) Produce or Shut Down? 32 36 42 55 66 76 COST (D olars per bench)
andall ndall Can I ask you about some of your average variable costs? Sure! I remember from my economics classes that average variable cost (AVC) is equal to: Okay, can you tell me the average variable cost of washing 90 cars? (Round to one decimal place. Click the Production Data tab to access the car wash data.) Ty Average Variable Cost Production Data Production Data Workers 0 1 2 469 SAW Production Data Cars Mashed 0 8 23 42 64 80 90 98 96
urses H 880 alendar 24 Inbox History ? Help SC K- 7 Q A Refer to the table below, which presents costs associated with a small business selling cookies. Total cost ($) 7 Quantity O cookies 1 cookie 2 cookies 3 cookies 4 cookies 5 cookies :8: 5.3 Calculate the average variable cost of producing 3 cookies. Do not express your answer in units (i.e., if your answer is "$600", type "600"). If necessary, round your answer to one decimal place. 2 W S F2 # 3 80 F3 20 E JAN 5 D $ 4 888 R F F4 % 5 T F5 6 me F6 MacBook Air Y H & N 8⁰ 10.50 13.50 16 18 20 7 F7 U tv NAⓇ * 8 J ► 11 FO ( 9 D 1 K F9 O ) O W F10 L P Aa zoom + { 1 Submit F12 M htm deles
Define economies of scale and explain why they mightarise
Fill in the appropriate numbers in the blank spaces, given the following information:output Total fixedcost (RM) Totalvariable cost(RM) Averagefixedcost(RM)Averagetotal cost(RM)Marginalcost(RM) 0 100 01 100 202 100 503 100 604 100 655 100 70
Solve for the following:a. Marginal Costb. Average CostSuppose that a food manufacturing company’s cost function is given by thefollowing equation: (in the picture)

SEE MORE QUESTIONS

Recommended textbooks for you

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

SEE MORE TEXTBOOKS