A cost of production function is given as C (n) = (n – 100)2 + 100 where C (n) is the cost in $ of producing n number of a certain product. Use the derivative to determine the n which will minimize the cost of production. n = 10 n = 100 c) n = 50 d) n = 20

A cost of production function is given as C (n) = (n – 100)2 + 100 where C (n) is the cost in $ of producing n number of a certain product. Use the derivative to determine the n which will minimize the cost of production. n = 10 n = 100 c) n = 50 d) n = 20

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

See similar textbooks

Related questions

Q: A firm manufactures a product that sells for $16 per unit Variable cost per unit is $8 and foxed…

A: Answer - "Thank you for submitting the question. But, we are authorized to solve only sub parts .…

Q: Equate total revenue and total cost functions and solve for Q

A: Total revenue = Price * Quantity Total cost = Fixed cost + Variable cost

Q: In the context of process analysis a. _____ can help eliminate or minimize bottlenecks. b. _____…

A: A bottleneck is a stage in a process that restricts the overall capacity of the process. In a…

Q: Savemart needs 1000 coffee makers per year. The cost of each coffee maker is $78. Ordering cost is…

A: Annual demand = 1000 Ordering cost = $100 Per unit cost = $78 Carrying cost = 40% per unit Holding…

Q: Cost in oil and gas operations may be classified into a number of non-mutually exclusive groupings…

A: Cost is the expenditure that is incurred in the production of goods and services. It means the total…

Q: The car wash is open 50 weeks per year and washes 800 cars per week. Whether operative or not, the…

A: Fixed cost = 2000 Average fixed cost = 2000/800 = 2.5 Variable cost = 1600 Average variable cost =…

Q: Select the WRONG equation for the equivalent uniform cost from the list below. The interest rate is…

A: Given: Interest rate=8%

Q: Savemart needs 1000 coffe makers per year. The cost of each coffee maker is $78. Ordering cost is…

A: The quantity of coffee needed annually = 1000 Cost of each coffee machine = $78 Per order cost or…

Q: The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The making of rivet holes in structural steel members can be done by 2 methods. The first method…

A: Here, the time taken (in seconds) for one hole is given, so by using unitary method we can find the…

Q: If the system costs $600 to fix every time it breaks down, what is the expected fixing cost if the…

A: Let's first calculate reliability and failure of the system using the given values.

Q: What is the optimal order quantity and the minimum annual cost for Bell Computers to order,…

A: EOQ = [ 2 x demand once a year x cost of ordering / cost of holding one unit per year]^0.5 = [ 2 x…

Q: For the cost function C0) = 100 - 20 - 30, the total variable cost of producing 2 units of outout…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: An equation that can be used to determine the total cost, C(t), of the phone plan for t months is…

A: Total cost is the sum of fixed and variable cost.

Q: Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she…

A: Economic order quantity helps the firm in analyzing the quantity of order that it should place so…

Q: 4. Optimize the following function and comment about the findings. y =- 5x; +10x, + x,x, • 2x{ +4x;…

A: here we optimize the following function as given below;

Q: The amount she must contribute if earnings remain at 10% per year is $X

A: Interest rate refers to the percentage figure attached with an investment opportunity. It determines…

Q: Find out when the tool starts to generate profit? (Ignore the range of the cost function.

Q: An input combination described in the 2 points: point A (L=10, K=15) and point B (L=10, K=17) can be…

Q: The revenue function R(x) and the cost function C(x) for a particular product are given. These…

A: The total revenue function shows the revenue a firm is able to generate when it sells different…

Q: Restaurants in tourists' areas will close during the off-season if their: AFC is greater…

A: Answer - Given in the question that Resturants in tourist area will close during off season if. Now…

Q: From the graph provided one can surmise that the number of time spent on cost estimation, the less…

A: GIVEN From the graph provided one can surmise that the number of time spent on coast estimation,…

Q: A Biomass Power Plant uses biodegradable wastes as fuel to produce electricity. The cost A dollars…

A: Given Cost function: A=12+0.3B+0.27B2 ... (1) Where B is in megawatts Revenue function:…

Q: When all the unit cost curves are below the MC curve, the AVC and AC curves are declining.

A: Ans. in step 2

Q: In an order fulfillment facility, the shipping lead time is estimated to be 3-5 days from receiving…

A: This seemingly straightforward indicator assesses your company's ability to meet client demand. A…

Q: When the variable cost is reduced for linear total cost and revenue lines, the breakeven point…

A: The break-even point refers to the point where the total cost and the revenue in the economy are…

Q: Sales of bottled water in the United States totaled 34.0 gallons per person in 2014. Evian, a…

A: Project MW: Cost (C) of water is $2.9 per (Q) 1,000 gallons. Project EW: Cost (C) of water is $0.6…

Q: Rising per-unit production costs are most: Multiple Choice

A: A rise in the per-unit cost of production suggests that it will affect the supply adversely. The…

Q: Determine optimal number of needles to order, given D= 2,000 units, S = $15 per order, H= $.50 per…

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment…

A: Fixed costs are costs that are incurred in operating a business irrespective of the output produced.…

Q: T = - Q² + 17Q – 60 Find Q that maximizes the function:

A: Interest rate effect the consumption decision of whether to consume today and tomorrow.

Q: ingle Circuit Configuration will always have only three conductors for the three phases. Select one:…

A: In a three-stage framework, three circuit conductors convey three substituting flows (of a similar…

Q: If the ATC of the 20th unit is $35, then: A) the MC is increasing between 10 and 20 units; B) the…

A: Total cost at 20th unit is 35 Thus, total cost = 20×35 = 700 Now,Total cost = variable cost + fixed…

Q: A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b)…

A: Given: Q = 160 = 2√(KL) r = 4, k = 2 The cost function can be written as - 4K + 2L (Assuming r =…

Q: A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The production function of the company has the form: Q(x, y) = 5 x y. The price of a unit of…

A: Given Production function: Q(x,y) =5xy .......... (1) Price of resource X =10 rubles per unit…

Q: find the partial derivative with respect to L and k of y = f(K, L) = A (α ln K + (1 − α) lnL))

A: The function to be considered is:

Q: A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be…

A: Fixed cost is $50 at 80% output level. So, at 80% output level, fixed cost = $50 x 800 = $40,000. We…

Q: Khaled has developed a new technology device that is so exciting he is considering quitting his job…

A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…

Q: C=19,250+70x+x2, where C is measured in dollars. For both unctions, the input x is the number of…

A: A profit function is a mathematical relationship between a firm's total profit and output. It equals…

Q: Consider the following data of a company for the year 1999: Sales = Rs. 1,20,000 Fixed cost = Rs.…

A: Use the below formulas to find the BEP. BEP = Fixed costP/V ratio P/V ratio = ContributionSales…

Q: Given the Total cost Function, TC = 5,600 + 27Q - 6Q² - .5Q³, solve for AC, MC, AVC and AFC

A: Formula to calculate:- 1) Average Cost AC=TCQ 2) Marginal Cost MC=dTCdQ 3) Average variable cost…

Q: business are P 50,000 a month and the variable cost is P 0.50 per p or P 6.00, how many pieces must…

A: Given that, Labor = 0.50 Material = 3 Variable = 0.5 Fixed Charges = 50,000 Income: Selling Price =…

Q: The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment…

A: A car company has two types of cost, the one is variable cost which changes with the change in…

Q: True/False Total cost can never be zero

A: # Total cost is given by the sum of total fixed cost and the total variable costs. TC = TFC + TVC

Q: ISO 14001 can be applied to any organization in any sector. For instance, a public administration or…

A: 1 True ISO 14001:2015 can be used in any organization, and it would be regardless of any size, type…

Q: The endpoint method computes the percent change as a percent of the starting value. | The endpoint…

A: Price elasticity of demand indicates the responsiveness of quantity demanded to a change in the…

Q: A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month…

A: The total cost of production is defined as the total monetary value of all the inputs used by the…

Q: If r increases, C and w unchanged, the isocost will shift parallely to the right shift…

A: Isocost is a line revealing several combinations of two production factors : labor and capital that…

Question

A cost of production function is given as

C (n) = (n – 100)2 + 100

where C (n) is the cost in $ of producing n number of a certain product.

Use the derivative to determine the n which will minimize the cost of production.

n = 10

n = 100

c) n = 50

d) n = 20

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

An apple grower has discovered a process for producing oranges that requires two inputs. The production function is Q = min{2x, y}, where x and y are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are wx = $5 and wy = $10, respectively. The minimum cost of producing 160 units is therefore:a. $2,400.b. $1,600c. $800.d. $2,000.e. $8,000. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Find the Total Cost function as a function of q, c, d. A. w and r; and graph it in relationship to q in excel The idea is to solve the following input minimization problem ina general manner: minTC(K, L ) = wL+ rKs. t. q = AK^CL^d Make sure to set - up your spreadsheet by identifying the optimization problem, the endogenous variables, the exogenous variables and the constraint. Make sure also to show a cell that computes TRS and another that computes -w/r.
Give me right solution with clear calculations
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
Could you explain again how you got part a? I don't understand what RHS is nor what the answer is for the partial derivative for price with respect to wage
What is the formulae used to find unit cost?
For upvote solve in 1 hour
Please solve within 5 min otherwise I will give you downvote
A company has invested in an online tool that is expected to generate a continuous revenue at a rate that increases 252 thousand TLs per time period t (t= 0 is when the tool begins to function). A continous promotion cost (in thousand TLs) function for 578 time periods, C(t), is also derived for the machine, C(t) = -t2 + 578t. Find out when the tool starts to generate profit? (Ignore the range of the cost function.
Solve the following with complete solutions
A vacuum cleaner retailer has been selling 84 units per month of the basic Bissell stick model for $80. The retailer’s variable costs for that model are $51. (a) If a retail manager has only the information provided above, calculate the breakeven sales level for lowering the price of the basic Bissell stick model to $72. Show your work. (b) Assume that the retail manager then finds out that when a customer buys a Bissell stick model, the customer also spends an average of $20 for vacuum cleaner bags and that the retailer’s contribution margin on vacuum cleaner bags is 55%. Given this additional information, recalculate the breakeven sales level for lowering the price of the basic Bissell stick model to $72. Again, show your work. (c) Would having the additional information about the vacuum cleaner bags make it easier for the manager to make more profit from the price decrease or would it make it harder for her to do so? Explain your reasoning.
A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b) Find K* and L* c).Is the second-order sufficient condition for minimum satisfied?