A car wash service 'Clean and Shine' is a small business operating in the short run in aperfectly competitive market. The business has to pay for electricity and water as much asIDR200 thousand a month, whereas its variable cost (VC) is expressed as a function of thenumber of cars washed (q):VC(q) = 5q + 0,1q² (in thousands of rupiah)Currently the price of car wash services is IDR35 thousand/car. Draw the average variable cost (AVC) curve and the marginal cost marginal (MC)curve of Clean and Shine business in one diagram. (5 points)At what minimum price is Clean and Shine willing to provide its services?Calculate, then show and explain the Clean and Shine supply curve from theprevious diagram (at poin (i)). (5 points)

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Answered: A car wash service 'Clean and Shine' is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the total fixed costs of manufacturing 100 fans is $7500. Calculate the average fixed costs.
In the market for foam fire retardant there is only one firm. The demand func-tion for the product is Q = 15,000 – 10P where Q is the annual sales quantity in tons and P is the price per ton. The firm’s total cost function (in dollars) is C = 1,400,000 + 300Q + 0.05Q2.a) How much foam fire retardant should this firm produce and sell in order to maximize its profit? What price should it charge?b) Compute the firm’s total profit.c) Suppose now that the firm faces a 20% increase in variable costs. Determine what impact this will have on the firm’s optimal choice.
Suppose an avocado farm has cost C=0004g- 28g 1250 (ahere g is measured in bunches) The market price per bushel of avocados is $28 In the short run, thig firm's profit is N (Round your response to the nearest penny)
Rent of a factory is the fixed cost for the firm True/False
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Эшestion 1 A computer retailing company specializes in the sale of jump drives to community college tudents. The demand function for jump drives is p=2x+10x+1000 dollars For the samne company the average cost function is given as: ē = 2x +36x-1600- 20 * dollars Where p is the price in dollars and x represents units of output. 1) i1) Find the price and output that will maximize profit. Find the maximum profit
p=D(x)=71.5−0.02xp=D(x)=71.5−0.02x dollars. The total cost for these coffee makers is given by C(x)=0.05x2+5.5x+6200C(x)=0.05x2+5.5x+6200 dollars. Determine the marginal profit for 118 coffee makers.
It is known that the firm's fixed costs = 55. The marginal cost function has the form: MC = 22-8Q + 3Q2 + 2Q3. Determine the function of the total costs of the company (TC) and calculate these costs for the release of 3 units of production.
3) A firm produces 50 000 boxes in one month and market price of these shoes is 10 TL per box. The total cost of the firm 400 000 TL and 20% of that cost is variable cost. Given that information a) Calculate the profit, ATC, AFC and AVC of that firm b) Suppose that market price is up to 11. The firm considers to increase its output to 55 000 when the price is 11 which however will lead to a total cost of 480 000. Should this firm increase its output and if so, why?
A farm produces rice, which is sold in 50 kilogram bags. Let Q denote the number of bagsproduced per week during harvest time. Costs C are denoted in units of dollars. The totalweekly cost function for producing the product is C = 4Q + 100. The total weekly income function for this product is I = 50Q – 2Q2. What is the profit function P as a function of Q and sketch it using P values 0, 5, 10,15, 20 and 25.
The long-run cost function for a firm in the personal computer business is: C(q) = 8q² + 7200, for q> 0. What is the average cost function AC (g)? AC (q) = 16q AC (q) = 8q+ 7200 9 AC (q) = 16q+ AC (g) 16q+7200 AC(q) = 8q+7200 = 7200 9 The long-run cost function for a firm in the personal computer business is: C(q) = 8q² + 7200. for q> 0. What is the marginal cost function MC (q)? MC(q) = 8q+7200 MC(q) = 8q MC (g) MC (q) = 16q MC (q) = 16q+ 16q+72000 7200 The long-run cost function for a firm in the personal computer business is: C(q) = 8q²+7200, for q> 0. At what level of output does average cost equal marginal cost? The level of output at which average cost and marginal cost are equal is type your answer... -01
The total cost of producing mobile phones is TC = 10 + 70q + 30q^2 l. Calculate the marginal cost.

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