Give the formulas for and plot average fixed​ cost, AFC, marginal​ cost, MC, average variable​ cost, AVC, and average​ cost, AC, if the cost function​ is: C=6+9q−4q2+q3. Marginal cost​ is: MC​ = ?????enter your response here Average fixed cost​ is: AFC​ = ????enter your response here Average variable​ cost: AVC​ =???? enter your response here

Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $3.00 in ingredients per pizza, $0.20 in electricity per pizza, $1,500 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 1,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ (Enter your response as an integer.) What is the fixed cost of production (per month)? The fixed cost of production is $ ☐. (Enter your response as an integer.)

Calculate a cost function from a production function and explain how economic costs differ from accounting costs.

A firm produces plastic bins using labor (measured in man-hours) and capital (measured in machine-hours), according to the production function Q = f(L,K) = LK, where Q is the number of plastic bins produced. Suppose that the cost of labor is $20 per worker-hour and the cost of capital is $10 per machine-hour. What is the cost minimizing input combination if the firm wants to produce 28,800 plastic bins? Hint: The marginal products are MP, = K and MPg = L.

Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started looking at the cost function C (æ), the cost of a firm producing z items. An important microeconomics concept is the marginal cost, defined in (non- mathematical introductory) economics as the cost of producing one additional item. If the current production level is æ items with cost C (z), then the cost of computing h additionial (C(z+h)-C(z)) items is C (z + h). The average cost of those h items is . As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h → 0, i.e. the derivative C' (z). Use this function in the model below for the Marginal Cost function MC (x). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 0.02a3 – 10z + 450. (a) Find the marginal cost function. MC (z) (b) Find the marginal cost when 50 units of the item are produced. The marginal cost when 50…

Use the function below (whose parameters qualify it as a STC function) to answer the questions.  See the text p. 244 for a representative figure.   1. Total fixed cost is $_________ 2. Obtain the AFC function from (a) and write it here _____________ 3. Obtain the AVC function contained in the STC function and write the  AVC function here _________________________

Nokia sells a new budget cell phone. Based on information provided by the accounting department, the average variable cost is: AVC = $30 + Q %3D The average fixed cost is: AFC = $9,000,000/Q where Q is the number of phones. The phone sells for $50. Show your work/thought process: a. Find the total cost, average cost, and marginal cost equations. b. At what level of output is average total cost minimized?

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3.  Suppose that the feasible region of a cost minimization linear programming problem has three corners points of (5,8), (10,5), and (4,10). If the objective function is given as: Minimize Z = 2X + Y     Which of the following represents an iso-cost line?     Select one: a.   X + 2Y  =  10   b.   X ­– Y  =  10   c.   2X ­– Y  =  10   d.   2X + Y  =  10   e. none of the other options.