Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles being its productive inputs steering wheels, frames and seats (v) and wheels (r). Each tricycle has 3 wheels (Pr = $2) and 1 steering wheel, 1 seat and 1 frame (Pv = $4). Determine: a. The production function of "Mr. Tomas" b. The short-run cost function (for r = 30). c. The long-run cost function d. How much it costs the firm to produce: 1. the tenth unit in both the short run and the long run? 2. the 40th unit?
Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles being its productive inputs steering wheels, frames and seats (v) and wheels (r). Each tricycle has 3 wheels (Pr = $2) and 1 steering wheel, 1 seat and 1 frame (Pv = $4). Determine: a. The production function of "Mr. Tomas" b. The short-run cost function (for r = 30). c. The long-run cost function d. How much it costs the firm to produce: 1. the tenth unit in both the short run and the long run? 2. the 40th unit?
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: The Cost Of Production
Section: Chapter Questions
Problem 2CQQ
Related questions
Question
Course:
The company "Mr. Tomas" manufactures tricycles being its productive inputs steering wheels, frames and seats (v) and wheels (r). Each tricycle has 3 wheels (Pr = $2) and 1 steering wheel, 1 seat and 1 frame (Pv = $4). Determine:
a. The production function of "Mr. Tomas"
b. The short-run cost function (for r = 30).
c. The long-run cost function
d. How much it costs the firm to produce:
1. the tenth unit in both the short run and the long run?
2. the 40th unit?
NOTE: this exercise already was answered few hours ago but it's wrong. Please refer to course about Microeconomic - Long and Short run cost
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc