Suppose marginal benefits and marginal costs are given by B(Y) = 100 − 16Y and C(Y) = 20Y. What level of Y will yield the maximum net benefits?
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Suppose marginal benefits and marginal costs are given by B(Y) = 100 − 16Y and C(Y) = 20Y. What level of Y will yield the maximum net benefits?
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- Suppose that the total benefit and total cost from a continuous activity are, respectively given by the following equations: B(Q)=17.9+12.5Q-3.6Q2 and C(Q)=9.5+2.9Q. [Note: MB(Q)=12.5-(2) (3.6Q) and MC(Q)=2.9]. What are the marginal benefits at Q=1?Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C(x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C(x). Problem Set question: The cost, in dollars, of producing x units of a certain item is given by C(x)=5x−4x−1−−−−√. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is .The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the average-variable-cost (AVC) curve at their minimum points. Select one: True False
- Suppose that the dollar cost of producing x appliances is c(x) = 1000 + 70x-0.1x². a. Find the average cost per appliance of producing the first 100 appliances. b. Find the marginal cost when 100 appliances are produced. c. Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly. CUCKO The average cost per appliance of producing the first 100 appliances is $ (Round to the nearest cent as needed.) /appliance.In terms of dynamic programming, explain what the optimality principle means.If b=0, what would happen to the total-cost and marginal-cost curves of C=C(Q)=aQ^3+bQ^2+cQ+d?
- Problem 1: Winter melons A farmer is using land and fertilizer to produce winter melons. The production function is q = L√F. The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of land and 4 units of fertilizer. a) Would it be possible to produce the same number of winter melons at a lower cost? In particular, would the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to keep production constant? Or by doing the other way round? b) Suppose now that the farmer cannot modify the amount of land but can modify the amount of fertilizer. Write the cost function. c) The farmer can bring the winter melons to a market and sell them at price 1. Find the optimal quantity to produce. Show that the profit is negative.A street musician bought a new fiddle for $850.00. Assume she breaks 1 string each hour and can buy new strings for $1.00 each. On average, she makes $18.00 per hour. (a) Find the cost function C(x) associated with playing the fiddle for x hours. C(x)= (b) Find the revenue function R(x) for the amount of revenue gained from x hours of playing R(x) = (c) Find the profit function P(x) for the amount of profit gained from x hours of playing P(x) = (d) Use the functions above to complete the following sentence. She will need to work hours to break evenA lot of companies use the marginal cost function for their business models to determine the production level to minimize total costs. As we all know, if C (x) represents the total cost of producing x units of a product, then the average cost per unit at this production Let assume C (x) is differentiable on all x > 0 . This implies that the C(x) level is average cost function is also differentiable for all x > 0 since C(x) can be written as C (x) · - , and both C (x) and are differentiable for all x > 0. Suppose you go to an interview and the chairman of the interview committee gives you the following questions: In our company , we use marginal cost to determine the production level to minimize the costs. However, there is another useful model in business, the average cost function, that we also track. 1. Is it true or not that the marginal cost C '(x) is equal to the average cost at the critical points of the average cost function? Please elaborate and explain to us. 2. This year, the…
- Given the cost function , TC = 4q2 + 9 - calculte marginal cost ?The cost of renting tuxes for the Choral Society's formal is $21 down, plus $87 per tux. Express the cost C as a function of x, the number of tuxedos rented. C(x) = Use your function to answer the following questions. (a) What is the cost of renting two tuxes? %$4 (b) What is the cost of the second tux? $4 (c) What is the cost of the 4,098th tux? 2$ (d) What is the variable cost? %24 What is the fixed cost? $4 What is the marginal cost? %24A manufacturer named Kjell is facing the following product function.1 x = f(N, K) = 100Nº.8K0,2 The price for labor is NOK 500 per unit. The price for capital is NOK 125 per unit. a) Does the product function provide constant, increasing, or decreasing scale benefits? b) Kjell wants to produce 400 cakes at the lowest possible cost. How much labor and does he need capital? What will be the cost? c) The bank is not impressed by Kjell's production technology. He therefore receives a loan of only NOK 1,875. How many cakes can Kjell produce a maximum of NOK 1,875. d) Make a factor diagram (N, K). Note Kjell's adaptation from problem b) and c). Draw the isocost lines and the substituent template. e) A short-term strike leads to the price of labor rising to NOK 750. Kjell still has only NOK 1,875. How will Kjell change his adaptation from c)?How many cakes does he produce now? f) Kjell eventually starts making money, and wants to expand production to 650 cakes. What will be Kjell's new…