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5. Doug's Dogs (L). In the short run, the hot dog seller Doug's Dogs has a single variable input, laho- w = 50 The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: The total product of labor equation is: TPL = 5L½ Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. UC= L.W 30.L VC = 50L . TC =Uct FC TC = SOL+100o 50 L+1000 50 MC = mc= 60 dl b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 6LV2=Q Q=5 L"a Va SLASS G= as P=100 Q* = 25 TR=P.Q R= LU0 · a 5-2500 R*= S00 (R=2500 C= 50 (25)+1000 100 (SL 2) C* = 22SO TR= 500 L Y=TR-TC n*=_a50 laso+i000 S0OL"&-(50L+1600) SOOLM2-SOL-1006 TTR-TC 2 S00 -22s0 -280 ATT 250 -50 =0 5)2

5. Doug's Dogs (L). In the short run, the hot dog seller Doug's Dogs has a single variable input, laho- w = 50 The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: The total product of labor equation is: TPL = 5L½ Doug's total fixed costs are: FC = 1000 a. Find the equations of variable cost, total cost, and marginal cost. UC= L.W 30.L VC = 50L . TC =Uct FC TC = SOL+100o 50 L+1000 50 MC = mc= 60 dl b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 6LV2=Q Q=5 L"a Va SLASS G= as P=100 Q* = 25 TR=P.Q R= LU0 · a 5-2500 R*= S00 (R=2500 C= 50 (25)+1000 100 (SL 2) C* = 22SO TR= 500 L Y=TR-TC n*=_a50 laso+i000 S0OL"&-(50L+1600) SOOLM2-SOL-1006 TTR-TC 2 S00 -22s0 -280 ATT 250 -50 =0 5)2

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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5. Doug's Dogs In the short run, the hot dog seller Doug's Dogs has a single varlable input, labor. w = 50 (L). The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: TPL = 5L½ The total product of labor equation is: FC = 1000 Doug's total fixed costs are: Find the equations of variable cost, total cost, and marginal cost. a. UC = LiW 50L VC = 30.L . TC =Uct FC TC = SOL+I00O 50 L+1000 50 MC = mc= dTC_ 60 dl %3D b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 5L2=Q P=100 Q =5L"2 va Q* = 25 TR=P.Q 作2s R= LU0 25-2500 R*= _ so C* = a2sO 100 (SL V2) (R=2500 C= 50 (25)+1000 laso+1000 (2250%3DC TR= 500 L N = TR-TC n*= _a50 soO L"& -(50L +1600) ア-TR-TC SOOL2-SOL -1000 2. 2 S00 -22so -280 250 ン di meact Pockets and stay-pu Prongs lor secure paper Pocket for inder cards and m
Transcribed Image Text:5. Doug's Dogs In the short run, the hot dog seller Doug's Dogs has a single varlable input, labor. w = 50 (L). The price of the labor input is: P = 100 Doug is a price-taker. The price per case of hot dogs is: TPL = 5L½ The total product of labor equation is: FC = 1000 Doug's total fixed costs are: Find the equations of variable cost, total cost, and marginal cost. a. UC = LiW 50L VC = 30.L . TC =Uct FC TC = SOL+I00O 50 L+1000 50 MC = mc= dTC_ 60 dl %3D b. Find the profit-maximizing output, revenue, cost, and profit. TPL= 5L2=Q P=100 Q =5L"2 va Q* = 25 TR=P.Q 作2s R= LU0 25-2500 R*= _ so C* = a2sO 100 (SL V2) (R=2500 C= 50 (25)+1000 laso+1000 (2250%3DC TR= 500 L N = TR-TC n*= _a50 soO L"& -(50L +1600) ア-TR-TC SOOL2-SOL -1000 2. 2 S00 -22so -280 250 ン di meact Pockets and stay-pu Prongs lor secure paper Pocket for inder cards and m
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