Answered: The cost of producing 5-gallon water…

The cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5-gallon water bottles are produced, find the total cost

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

See similar textbooks

Related questions

Q: The marginal cost of drilling an oil well depends on the depth at which you are drilling; drilling…

A: The cost structure of a firm determines its profitability. It helps the firm in deciding how much…

Q: a bus which holds at most 45 people to go to an educational tour in a museum. The bus company…

A: Firms use the total cost function to compute their profits. The total cost function consists of…

Q: Find total cost if average cost is $11 and the output is 24 units

A: Average Cost (AC): - it is the average value of total cost incurred on a specific unite of output.…

Q: A car part manufacturer has been asked to quote for 40 units of a new part. The following data are…

A: Learning curves uses the basis that the people and organizations get more efficient and productive…

Q: If fixed cost decreases to $16,000, does this change the production decision of the airline in the…

A: There are two types of costs, one is fixed and other is variable.Fixed cost does not depend on…

Q: Referring to the cost table above, what is the average total cost if quantity produced equals 300…

A: Total cost of a firm is the cost incurred by the firm by producing a certain amount of output. The…

Q: A small business woman has realized that for one of her products, if the price per unit is GH¢20 she…

A: (i) An expression that relates price with output is the demand function which the business woman…

Q: increasing, decreasing, or constant returns to scale.

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: Here, average variable cost function is given as: AVC=96-2Q+0.05Q2 This function can be used to…

Q: Calculate the level of average cost to produce 39 units of output if the total cost function is…

Q: The total cost C for a manufacturer during a given time period is a function of the number N of…

A: Slope = 20 Initial Value = $1020 Formula Total Cost = Fixed Cost + Variable Cost Total Cost = 1000…

Q: Find variable cost if total cost and total fixed cost are $440 and $80 respectively

A: The information being given is:- Total cost = $440 Total Fixed cost = $80 We have to calculate…

Q: The total revenue function for a product is given by R=655x dollars, and the total cost function…

A: Revenue is the money generated from normal business operations, calculated as the average sales…

Q: A manufacturer has determined the marginal-cost function do/dq below, where q is the number of units…

A: Here, Marginal cost function is given as: MC=0.012q2-0.4q+60 and, MC is $70 when q is 50 and fixed…

Q: A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so…

A: Costing is a critical component of running a business. We usually divide the cost of any…

Q: A manufacturer's total cost equation per day is given by the equation TC = 440 +4q+,0001Q². If each…

A: The functional connection that exists between costs and output is referred to as the cost function.

Q: For the cost function CQ) = 100 - 20 - 30, the total variable cost of producing 2 units of output is

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Consider the long run total cost function LRTC = 30*Q - .006*Q2 + .00001*Q3. What is Q when LRAC…

A: The cost function that represents the total cost of production for all goods produced is known as…

Q: The time to assemble the first unit on a production line is 11 hours. The learning rate is 0.93.…

A: Given: The time to assemble the first unit of the production line is = 11 hours The learning rate is…

Q: THE Blank 1: IS THE PER UNIT COST OF PRODUCTION OBTAINED BY DIVIDING THE TOTAL COST BY THE TOTAL…

A: It is the aggregate money expenditure caused by the firm on every one of the factors to produce a…

Q: What is meant by a sunk cost? Give typical sunk costs for an IT project.

A: Sunk costs are a type of fixed costs and they do not change irrespective of the levels of…

Q: The equipment cost for removing arsenic from a well that delivers 800 gallons per minute is $1.8…

A: Given:- The equipment cost is given as $1.8 million or $1,800,000 The overall cost factor is 2.25.…

Q: The profit function in dollars for a product is given -x^3+76x^2-380x-2800 where x is the number of…

A: Given, Profit function, Here, x is the number of units produced and sold Break-even occur at…

Q: The total cost function for a product is given by C(x) = 3x3-9x² -243x + 1229, where x is the number…

A: Given cost function C(X)=3X3-9X2-243X+1229TC should be 50000 at least

Q: The average cost function is:- 3Q² - 14Q + 20 Find the total cost function

A: The information being given is:- We are given with the average cost function:- 3Q² - 14Q + 20 We…

Q: referring to the cost table above, what is the total cost if quantity produced equals 100 units? a.…

A: Total cost is the overall cost which incurs in the course of production.

Q: The time to assemble the first unit on a production line is 17 hours. The learning rate is 0.89.…

A: First Unit (T1) = 17 we need to find T7 According to Learning curve formula, Yx = kxnThe assembled…

Q: If variable cost at each output level doubles, ATC doubles. AFC doubles. MC remains unchanged. MC…

A: If variable cost doubles, fixed cost remaining same, then total cost rises but MC doubles.

Q: When economies of scale are large, firms can reduce their average total cost by: Multiple Choice…

A: When firms have large economies of scale, they tend to merge with other firms to make up larger…

Q: Refer to Table Cost.EX2. When production is 4 units, the firm's average total cost is about

A: Average Total Cost = (Total fixed cost + Total Variable Cost) / Output

Q: The average cost function is:- 21Q - 33 Calculate the total cost function

A: We are given that the average cost function of the firm is as :- 21Q - 33 We need to calculate the…

Q: Suppose a firm only has $100 thousand dollars to spend in purchasing iron I and copper C to…

A: A budget constraint is an economic word that refers to the total amount of products you can afford…

Q: dollars. C'(x)=15+ 500 X + 1 If the fixed costs are $4,000 per week, find the cost function. What is…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: When talking about cost functions of a firm, it can be said that these coste function are…

Q: For the cost function C(Q) = 100 - 20 - 30, the total variable cost of producing 2 units of output…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Give the formulas for and plot AFC, MC, AVC, and AC if the cost function is

A: The average fixed cost (AFC) is the total variable cost per unit of output. This is found by…

Q: Maju Malaysia is a company that provided the catering service to UTHM students. Which of the…

A: To run a business, there are numerous costs that the owner has to pay. These costs are explicit…

Q: If you know that with 8 units of output, average fixed cost is $30 and average variable cost is $80,…

A: Average Fixed cost (AFC) is the fixed cost per unit of output. Average Variable cost(AVC) is the…

Q: Write the MC function if the total cost function is TC = 100 + 120q + q^2

A: Given the total cost: TC = 100 + 120q + q2 MC = dTCdq

Q: The cost for implementing a manufacturing process that has a capacity of 6000 units per day was…

A: Capacity (CA) old machine is 6,000. Cost of old machine (C) is $550,000. Capacity (CA) of new…

Q: For the total cost function, TC = 30 + 22Q + 2Q2 , does this cost function imply that there is…

A: There exists diminishing marginal productivity of inputs if marginal cost is rising, meaning cost of…

Q: if the total cost c=0.2q3 - 4q2 +1000, what is the marginal cost when q=100

A: the monetary value incurred in production process called production cost . There are two types of…

Q: What would be the value of average cost if total cost is $1600 and output is 24 units

A: The information being given is:- Total cost = $1600 Output = 24 units We have to calculate the…

Q: A company finds that it can sell out a certain product that it produces, at the rate of Tk. 2 per…

A: Given: Price at which quantity sold = 2 TC= (1000 + 250) = 1250

Q: Total Cost = C(x) = 0,005x^3 - 0,49x Lnx +5x Find : a. Average Cost Function b. Average Cost…

A: Average cost (AC) = C(x) / x AC = 0.005x2 - 0.49 Lnx + 5

Q: Find average cost if Total cost is $1000 and the output is 60 units

A: The information given to us is as follows:- Total cost = $1000 Output of the firm = 60 units…

Q: based on the following function AC=(48/Q)+3Q+10, then the Fixed cost is A) 48 B) 9 C) 18/Q D) 1

A: Fixe cost does not vary with the output

Q: A firm manufacture robots, for which $10000 machinary is used. The additional per unit cost is $100.…

A: Here machinary is the fixed cost = $10000 Variable costs = $100 Number of units = 5

Question

The cost of producing 5-gallon water bottles is given by

C(q) = 0.005q² + 2q + 1000.

If 2000 5-gallon water bottles are produced, find the total cost

Expert Solution

Step 1

Total costs, C(q) = 0.005q² + 2q + 1000.

Quantity = 2000 units

Step by step

Solved in 2 steps with 1 images

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The total cost (in hundreds of dollars) of producing x calculators per day is given by the equation. 20- 15- 10- C(x) = 6 + /2x + 32 Osx< 50 Perform the following calculations and interpret the results. 10 20 30 40 50 Production C'(x) =U %D Cost (hundred dollars)
Assume that it costs a company approximately C(x) = 400,000 + 140x + 0.003x? dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. 400,000 – 0.000009 Use it to estimate how fast the cost is increasing when x = 10,000. 2$ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. -Select--- at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- than the average cost from (b). This means that the average cost is
What is the formulae used to find unit cost?
A cost function is given. C(q) = 3600 + 5q-0.02q² + 0.00039³ (a) Find the average cost and marginal cost functions. +5 -0.02q +0.0003q average cost 3600 9 marginal cost 5 -0.04q+0.0009q (b) Use graphs of the functions in part (a) to estimate the production level that minimizes the average cost. (Round your answer to the nearest integer.) 194 ✓ units (c) Use calculus to find the minimum average cost. (Round your answer to two decimal places.) $ 32.41 X (d) Find the minimum value of the marginal cost. (Round your answer to two decimal places.) $ 4.56
major league baseball plans to sell special commemorative jerseys for the world series. the suppliers says that costs will be C(x)= 10x2-680x-20,000 dollras dor making x jerseys. MLB plans to sell them for 120 dollars each. how many jerseys must be sold for MLB to make a profit?
If the number of miles for a delivery is 5 & the number of minutes is 30, what is the estimated overhead cost associated with that delivery rounded to two decimals?
What is the average variable cost of washing 90 cars? is the answer 4 or .7?
A heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000 overhead cost. The next unit, i.e. the second unit took 3300 hours. Overhead cost for this unit was $200,000. Suppose the labor was $20 per hour. Being the production manager, you need to decide what would be the total production costs for additional 10 units after the completion of the second unit. Round the final amount to nearest integer. $1,597,832 C$1,003,183 (DNone of the above
If the total revenue is 184 units in the total profit is 132 units find the total cost?
The cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5-gallon water bottles are produced, fint the average cost
Assume that it costs a company approximately C(x) = 400,000 + 160x + 0.002x2 dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- v than the average cost from (b). This means that the average cost is ---Select--- v at a production level of 10,000 smartphones. Need Help? Watch It
Find average cost if output produced is 24 units and the total cost is $8700