Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 8, Problem 4E
To determine
To evaluate the various cost functions from the data given in the question
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Check out a sample textbook solutionStudents have asked these similar questions
Suppose the fridge daily cost function produced at Friga's Frigid Fridges is represented by the following
C(x) =
x-2
x3
2000 50
(a) Find the differential of the daily cost and use it to approximate the cost change if the current production is at 500 units and 5 more units are produced.
(b) Find the actual cost difference function and use that to calculate the cost for the 501st unit.
(c) Find the marginal cost function, evaluate C' (500), and interpret your results.
+ 50x + 20, 000
Your boss is the director of reporting for the Athens County Construction Agency (ACCA). It has been his job to track the cost of construction in Athens County. Twentyfive years ago, he created the ACCA Cost Index to track those costs. Costs during the first year of the index were $14 per square foot of constructed space (the index value was set at 100 for that first year). This year a survey of contractors revealed that costs were $70 per square foot. (a) What index number will your boss publish in his report for this year? (b) If the index value was 500 last year, what was the cost per square foot last year?
In line with the information including the production amount and total cost of the firm and the double (half) average technique, write the total cost function of the firm by making the relevant calculations and calculate the total cost for the production of 1150 units.
.
Chapter 8 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Similar questions
- A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P=-0.25Q+ 250, where P is the unit sales price of the product and Q is the demand of solar panels. Given the following: • Total cost = Fixed cost + Variable cost • Revenue = Demand x Price • Profit = Revenue - Total cost 26. The equation that represent the total cost is: a. ($10,875+$20) Q b. $10,875-$20 Q c. $10,875 × $20 Q d. $10,875+$20 Q 27. The equation that represent the total revenue is: a. $0.25Q²+$250Q b. - $0.25Q²+$250Q c. - $0.25Q²-$250Q d. $0.25Q²-$250Qarrow_forwardAn engineer who owns a construction company that specializes in large commercial projects noticed that material costs increased at a rate of 2% per quarter over the past 2 years. If a material cost index were created for that 2-year period with the value of the index set at 100 at the beginning of the period, what would be the value of the index at the end? Express your answer to two decimal places.arrow_forward
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