EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 7, Problem 7.5P
a
To determine
To find:Firm’s SRTC and SRAC function.
b)
To determine
To calculate:STC, SAC and SMC if 25,50,100 and 200 hockey sticks are produced.
c)
To determine
To plot:Graphical representation of SAC and SMC.
d)
To determine
To find:Point of intersection between SAC and SMC curve and it’s reason.
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Chapter 7 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 7.1 - Prob. 1MQCh. 7.1 - Prob. 2MQCh. 7.1 - Prob. 1TTACh. 7.1 - Prob. 2TTACh. 7.2 - Prob. 1MQCh. 7.2 - Prob. 2MQCh. 7.2 - Prob. 1TTACh. 7.2 - Prob. 2TTACh. 7.3 - Prob. 1MQCh. 7.3 - Prob. 2MQ
Ch. 7.3 - Prob. 3MQCh. 7.3 - Prob. 1TTACh. 7.3 - Prob. 2TTACh. 7.5 - Prob. 1TTACh. 7.5 - Prob. 2TTACh. 7.6 - Prob. 1MQCh. 7.6 - Prob. 2MQCh. 7.6 - Prob. 3MQCh. 7.6 - Prob. 1.1MQCh. 7.6 - Prob. 2.1MQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Prob. 8RQCh. 7 - Prob. 9RQCh. 7 - Prob. 10RQCh. 7 - Prob. 7.1PCh. 7 - Prob. 7.2PCh. 7 - Prob. 7.3PCh. 7 - Prob. 7.4PCh. 7 - Prob. 7.5PCh. 7 - Prob. 7.6PCh. 7 - Prob. 7.7PCh. 7 - Prob. 7.8PCh. 7 - Prob. 7.9PCh. 7 - Prob. 7.10P
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Similar questions
- A firm has the following production function where q represents the output level per week, L represents the number of hours of labor the company uses in a week, and K represents the number of machine-hours the company uses in a week: q=41,0.25 0.25 The hourly price of capital is denoted by r, and the hourly price of labor is denoted by w. 1) Solve the firm's cost minimization problem and find optimal L* and K* levels as a function of q, w, and r. For questions (2)-(4), assume w=4 and r=1. 2) Assume the firm wants to produce 16 units this week (q-16). How many hours of labor and capital should the firm's company hire? How much will it cost to produce those 16 units? 3) Assume that the firm is in the long run (that is, the firm can adjust L and K). What is the firm's supply curve? 4) Suppose now that the firm decides to produce 40 units instead. However, the firm has already hired 32 hours of machines and cannot adjust K. The firm can only adjust the hours of labor, L, (that is, the firm…arrow_forwardConsider the following short run cost function: TC = 4Q3 - 24Q² + 160 + 100 Derive the expressions for marginal cost and average total cost.arrow_forwardSuppose a firm faces a short-run total cost function of SRTC = 20 + 3Q + 2Q2 . a) Write the firm’s function for short-run marginal cost? b) What is the firm’s function for short-run average fixed cost? c) What is the firm’s function for short-run average variable cost?arrow_forward
- Suppose the long-run production function for a competitive firm is f(x1,x2)= min {3x1,2x2}. The cost per unit of the first input is w1 and the cost of the second input is w2. A: Find the cheapest input bundle, i.e. amount of labor and capital, that yields the given output level of y. B: Write down the formula and draw the graph of the firm’s total cost function as a function of y, using the conditional input demand functions. What is the relationship between the returns to production scale and the behavior of the total costs? C: Write down the formulas and draw the graphs of the average cost and marginal cost functions, as functions of y.arrow_forwardA firm producing hockey sticks has a production function given by q = 2Vkl In the short run, the firm's amount of capital equipment is fixed at k = 100. The rental rate for k is r = 5, and the wage rate for r = $1, and the wage rate for l is w = $4. (a) Calculate the firm's short-run total cost curve. Calculate the short-run average cost curve. (b) What is the firm's short-run marginal cost function? What are the SC, SAC, and SMC for the firm if it produces 25 hockey sticks? Fifty hockey sticks? One hundred hockey sticks? Two hundred hockey sticks? (c) Graph the SAC and the SMC curves for the firm. Indicate the points found in part (b). (d) Where does the SMC curve intersect the SAC curve? Explain why the SMC curve will always intersect the SAC curve at its lowest point Suppose now that capital used for producing hockey sticks is fixed at ki in the short run. (e) Calculate the firm's total costs as a function of q, w, r, and k1. (f) Given q,w,and r, how should the capital stock be…arrow_forwardIn the theory of the firm, economist consider the total cost to be a function of the output level Q: C=f(Q). According to the definiton of a function, should each cost figure be associated with a unique level of output?arrow_forward
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