Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Question
Chapter 7, Problem 14SQ
To determine
Calculate the marginal cost of producing 100th unit.
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The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per widget at a production level of 300 units is closest to which of the following? a. $2,800 b. $6 c. $8 d. $4,000.
Q. Table 3 above shows how output varies with only one variable input used in production. If the cost of a unit of labor is $500, what is the approximate marginal cost of the 230th unit of output?
a. $2.50
b. $8.50
c. $12.50
d. $50.00
e. $100.00
Adam operates a factory that produces beach towels. His current level of output equals 2000 towels per week. His
weekly variable cost equals $12 000. If the total cost each week equals $13 500, what can you conclude about the
fixed costs of production?
The total cost equals $25 500.
The total fixed cost equals $12.75 per towel.
The average fixed cost equals 75 cents per towel.
The average fixed cost equals $1500,
Chapter 7 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQ
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- 1. A firm estimates its production function as Q = -2.4 + 20*L -.5*L< + 30*K -1.00*K2 + 15*F -.3*F<. Total cost is TC = $2*L+ $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, K and F. How much F (Fuel) should the firm use? A.F=7.90. B.F=9.58. C.F=10.75. D.F=12.63. E. F=14.88.arrow_forwardThe production function is f (L, M) = 5L1/2M1/2, where L is the number of units of labor and M is the number of machines. If the amounts of both factors can be varied and if the cost of labor is $9 per unit and the cost of using machines is $64 per machine, then the total cost of producing 12 units of output is a. $438. b. $108. c. $576. d. $115.20. e. $57.60.arrow_forwardAdam operates a factory that produces beach towels. His current level of output equals 1000 towels per week. His weekly variable cost equals $4000. If the total cost each week equals $4500, what is the average total cost of production per towel? $2 $4 $4.50 $8arrow_forward
- Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answerarrow_forwardThe total cost equation for producing X widgets is given by TC = $1,000 + $6X. The variable cost per widget is closest to which of the following? a. $1,000 b. $6 c. $8 d. $4,000.arrow_forwardSuppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If technology and input prices remain the same and total cost increases to $3,680, what must be the new quantity of output per day under conditions of a) constant returns to scale (Click to select) b) economies of scale (Click to select) c) diseconomies of scale ✓ (Click to select) output increases to more than 24 output increases to less than 24 output increases to 24arrow_forward
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