Question 12 12 In the graph below, the firm is producing the quantity H. The marginal cost at the quantity His measured by the distance: A B с 0 COCO 08 8833 0 oc CA OH MC ATC AVC E 10 pts H

A manufacturer knows that:  His TR is given by Revenue = 23Q – Q2                                                                                               His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR)   b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC)                       c)  What output will make marginal Revenue equal Marginal cost?

For Problems 15-17It costs a company $500,000 to produce 1,000 treadmills. The company’s cost will be $500,350 if it produces an additional treadmill. The company is currently producing 1,000 treadmills. A) What is the firm’s average cost for 1,000 treadmills? B) What is the firm’s marginal cost for the 1,001 treadmill? C) A customer is willing to pay $200 for the 501st treadmill. Should the company produce and sell it? (Enter yes or no and briefly explain your reasoning)

Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be Price of steel is P175 per unit. Output (Q) TFC TVC TC MC TR MR Profit/Loss 0 500 0           1 500 50           2 500 90           3 500 140           4 500 200           5 500 270           6 500 350           7 500 450           8 500 600           9 500 800

Given Q=100K^0.5L^0.5 ,w= 30, r=40 i) Find the quantity of labour and capital that the firm should use in order to minimize the cost of producing 1444 units of output ii) What is this minimum cost?

You have a plant that produces copiers for sale. Your costs for producing copiers are 1: $42, 2: $44, 3: $47, 4: $50, 5: $54, 6: $60, 7: $69, and 8: $80. What are your marginal costs for each copier produced? If you sell a copier for $15 per copier, what quantity of copiers sale would you want?

You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own.  You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues            $400,000Cost of Food        $120,000Salaries/Wages   $100,000Utilities                 $25,000Taxes                   $20,000  What is your accounting profit?  Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change?  Show your calculations.  Explain how and why your answers will change or…

HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?

Mang Isko, a fisherman, is paid ₱180.00 for every 1 kilo of fish he catches. If within the day, he is able to catch 50 kilos of fish, how much is his gross pay for the day?

If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a firm should:     A). reconsider past production decisions.     B). decrease production.     C). increase production.     D). hold production constant.