If there were 2 firms that produced footballs and they both paid the same in wages and raw materials. But firm A produced 100 per week and firm B produced 300 per week while both had an ATC of $10 per football. Then If Firm C built an identical facility and produced 200 footballs per week would the ATC be the same?

If there were 2 firms that produced footballs and they both paid the same in wages and raw materials. But firm A produced 100 per week and firm B produced 300 per week while both had an ATC of $10 per football. Then If Firm C built an identical facility and produced 200 footballs per week would the ATC be the same?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 16QP

See similar textbooks

Similar questions

At a company meeting, someone suggests that Samsung would be better off if it uses its resources to manufacture 25 million phones and 1.75 million tablets. As one of Samsung's analysts, how do you explain the feasibility of the suggestion to the other team members in your company?
Kelsey produces microwaves. Last year, she made 10,000 microwaves at an average cost of $4 per microwave. Lamar produces toasters, and last year he made 4,000 toasters at an average cost of $11 per toaster. They are thinking about merging their companies, to see if they could produce output at a lower cost. (a) Suppose their engineers gave them an estimate that if they wanted to form one big company and keep making 10,000 microwaves and 4,000 toasters, it would cost at total of $75,000 to produce that output. What would our measure of this firm's economy of scope (SC) be? Should they merge companies? (b) Suppose instead their engineers had suggested that it would cost $90,000. What would our economies of scope be in that case? Should they merge companies?
You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want?
2. A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK = 5L and MPL = 5K. The wage (w) = $150 per hour and (r) = $1,000 per hour. Determine the least cost combination of K and L when the desired output is 1,000 What is the minimum cost of producing 1,000 per day?
Consider a country that produces computers (C) and food (F) using capital (K) and labor (L). Both industries are perfectly competitive. The factors of production are complements. As a result, unit factor requirements are fixed and given by: aKc = 3, akr = 1, aLc = 2 and ALF = 4. Suppose that this economy has 100 units of capital and 150 workers. (b) How does the capital-labor ratio in each industry depend on the relative wage W/R?
draw the marginal and average cost curves of companies p and q where Firm p: Cost= 4Q Firm q: Cost = 10 + 4Q you are also told that each of the two firms have maximum production capacity of 40,000 (max quantity) which is produced in batches of 4,000.
Imagine you run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want? Please show all work.
A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. If the price is $20 per unit, what is the break even amount of units for technology A? A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. If the price is $20 per unit, what is the break even amount of units for technology A? a. 70 b. 60 c. 50 d. None - They would have to shut down
The two side by side graphs are for two firms that between them supply all the original grown advocados for a local area. With vigorous competition between the firms, the price per pound has settled at a point where both firms are just breaking even. For each firm, the marginal cost (mc) average variable cost (avc) and average total (atc) curves are shown In the blank graph below, use the straight line tool to draw a straight line representing the short run market supply curve for quantities above zero. (that is Dont worry about operating points for which the quantity is zero)
Noah and Naomi want to produce 300 garden benches per week in two production plants. The cost functions at the two plants are C1(Q1)=800Q1−2(Q1)^2and C2(Q2)=850Q2−3(Q2)^2The corresponding marginal costs are MC1=800−4Q1and MC2=850−6Q2What is the best assignment of output between the two plants?Instructions: Enter your answers as whole numbers.Noah and Naomi should produce benches at plant 1 and benches at plant 2.
Let's say there are two farmers who each own a farm with Marginal Cost Curves as shown below. Both farmers received a contract to produce 400 total corn bushels. How should the famers organize and work together to be most efficient? Should the farmers produce 200 bushels from each farm in order to get to a total of 400 total corn bushels? Why or why not? Farm 1 Farm 2 MC, KK₂ Bushels of corn MC₂ 200 Bushels of corn
2. With reference to Example 9.5.1, let R(Q) = 80Q and C(Q) = Q2 + 10Q + 900. The firm can produce at most 50 units. (a) Draw the graphs of R and C in the same coordinate system. (b) Answer the following questions both graphically and by computation: (i) How many units must be produced for the firm to make a profit? (ii) How many units must be produced for the firm to maximize profits?