= Firm A has cost function c(q, r, w). At output q = 4 total cost is c(4, r, q) = 60, and at output q = 5 total cost is c(5, r, q) = 75. If Firm A has constant marginal cost, and input prices double to 2r and 2w, how much will it cost to produce q = 6 units of output (what is c(6, 2r, 2w))? (HINT: First calculate the marginal cost for c(q, r, w), then calculate c(6, r, w), and then calculate c(6, 2r, 2w)) O c(6, 2r, 2w) = 75 c(6, 2r, 2w) = = 90 O c(6, 2r, 2w) = 150 O c(6, 2r, 2w) = 160 O c(6, 2r, 2w) = 180

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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4 total cost is c(4, r, q)
5 total
75. If Firm A has constant marginal cost, and input prices double to 2r and 2w, how much
will it cost to produce q 6 units of output (what is c(6, 2r, 2w))? (HINT: First calculate the marginal cost
for c(q, r, w), then calculate c(6, r, w), and then calculate c(6, 2r, 2w))
=
Firm A has cost function c(q, r, w). At output q
=
cost is c(5,r, q)
○ c(6, 2r, 2w)
○ c(6, 2r, 2w) = 90
○ c(6, 2r, 2w) = 150
c(6, 2r, 2w)
O c(6, 2r, 2w) = 180
-
=
-
75
160
=
60, and at output q
-
Transcribed Image Text:4 total cost is c(4, r, q) 5 total 75. If Firm A has constant marginal cost, and input prices double to 2r and 2w, how much will it cost to produce q 6 units of output (what is c(6, 2r, 2w))? (HINT: First calculate the marginal cost for c(q, r, w), then calculate c(6, r, w), and then calculate c(6, 2r, 2w)) = Firm A has cost function c(q, r, w). At output q = cost is c(5,r, q) ○ c(6, 2r, 2w) ○ c(6, 2r, 2w) = 90 ○ c(6, 2r, 2w) = 150 c(6, 2r, 2w) O c(6, 2r, 2w) = 180 - = - 75 160 = 60, and at output q -
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