A manufacturer of fine pens produces in two plants. The total cost of producing in the first plant is given by TC₁ = y² + 100. The total cost of producing in the second plant is given by TC₂=²+200. In these cost functions, y₁ corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm is producing 20 pens in the second plant. If the firm is minimizing costs, total costs for the firm must equal $ . (Give your answer to two decimals.)

A manufacturer of fine pens produces in two plants. The total cost of producing in the first plant is given by TC₁ = y² + 100. The total cost of producing in the second plant is given by TC₂=²+200. In these cost functions, y₁ corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm is producing 20 pens in the second plant. If the firm is minimizing costs, total costs for the firm must equal $ . (Give your answer to two decimals.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A Chinese high technology manufacturing firm has a production function of 0.80 0.20 q=16L (based on Zhang, et al., 2012). It faces prices of w=$8 and r= $2. What are its short-run average variable and marginal cost curves? Let K be fixed in the short run. The firm's short-run average variable cost curve, AVC, as a function of K and q is AVC=$ (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcute. E.g., a superscript can be created with the character.) Write AVC and MC functions
Month (m): 4 Day (d): 1 Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = m q2 + d = (30) For a cost function like yours, Marginal Cost (MC) = 2 m q . Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Average Total Cost = Cost (q)/q = Variable Cost = Average Fixed Cost = FC/q = Marginal Cost = 2 m q = Average Variable Cost = VC/q = (15) Fill in the table with your values from your cost function. q Total Cost AVC AFC ATC MC 0 0 0 -- -- -- 1 2 3 4 5 6
imagine your firm has total cost function C = 2q3 – q2 + 40q + 60. Suppose it operates with level of production q = 9. What is your firm’s total cost?
Scenario 15-2 The information below applies to a competitive firm that sells its output for $40 per unit. When the firm produces and sells 140 units of output, its average total cost is $24.5. When the firm produces and sells 141 units of output, its average total cost is $24.60. Refer to Scenario 15-2. Suppose the firm is producing 140 units of output and its fixed cost is $975. Then its variable cost amounts to O a. $9,360.25. O b. $2,455.00. O c. $3,430.00. O d. $7,500.00.
In an industry, the minimum efficient scale is reached when a firm produces 500 units of output at an average cost of $20 per unit. If a smaller firm in the same industry produces 300 units of output with an average cost of $25 per unit, what can be concluded? The smaller firm is operating above the minimum efficient scale The smaller firm is operating at the minimum efficient scale. The smaller firm is operating below the minimum efficient scale The smaller firm's average cost is irrelevant to the concept of minimum efficient scale
Suppose a firm's total cost and marginal cost are given by TC= 200 + 100+90 and MC = 10 + 180. The output level that minimizes average total cost is 18 22.22 10 20 0000
A manufacturer of fine pens produces in two plants. The total cost of producing in the first plant is given by TC1 = yi + 100. The total cost of producing in the second plant is given by TC2 + 200. 3 In these cost functions, y1 corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm's marginal cost is $256. If the firm is minimizing costs, the firm must be producing pens.
The owner of a small business borrows 40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal EOY $21,512.20 installments. Complete the table below and show your work
A firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a marginal cost of $50 per unit produced. Producing more than 100 units has a marginal cost of $70 per unit produced. The firm cannot produce more than 150 units. How much does it cost to produce at q=0? at q=50? at q=100? at q=125? at q=150? Graph the firm’s marginal cost function
The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?
A factory that you are managing has an hourly production process that can be represented by the following Cobb Douglas Production function: Q=10KL. The price of one unit of capital per hour is $20 and the price of one unit of labour per hour is $20. You have been instructed to produce 100 units per hour or Q-100. Find the optimal amount of labour and capital that you will be using, and compute the total cost.
A factory that you are managing has an hourly production process that can be represented by the following Cobb-Douglas production function: Q = (K^0.25)(L^0.25.) The price of one unit of capital per hour is $10 and the price of one unit of labour per hour is $20. a) Find the optimal amount of labour and capital that you will be using to produce 100 units of output, b) Compute the total cost of producing 100 units of output. c) What have you learn from doing or thinking about this problem?