or each of the following cost-output relationships, describe the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions (C = total cost, Q = output): (a) C= 42,500,000 + 2550Q (b) C= 8.48 + 0.65Q + .00220Q²

or each of the following cost-output relationships, describe the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions (C = total cost, Q = output): (a) C= 42,500,000 + 2550Q (b) C= 8.48 + 0.65Q + .00220Q²

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:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

See similar textbooks

Related questions

Q: firm's average cost (AC) per unit of output depends on the number of hours of skilled labor (S) and…

A: AC = 3S2+2U2- 2SU-2S-6U+20

Q: Find the total-cost function c(q) given the marginal-cost function dc/dq below, if the fixed costs…

A: Given data: Marginal cost function, dcdq=1q+8 Fixed cost, FC=$4000

Q: In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The…

A: The highest variable cost for break even on this project can be calculated as follows.

Q: A manufacturer's total cost equation per day is given by the equation TC = 440 + 4q+,0001Q². If each…

Q: 3. In the manufacture of a product, fixed costs per week are Tk. 4000. If the marginal cost function…

A: Marginal cost is defined as the cost of producing one additional unit. i.e. MC = d(C)dq where C is…

Q: Someday, if you want to be an economist or to study more about economic analysis, what platform you…

A: While studying economics, economists have the capability to reduce costs while using different…

Q: Economists at Jensen Enterprises used time-series data to estimate the following total cost function…

A: TC(total cost) is the sum of TVC(total variable cost) and TFC(total fixed cost). AC(average cost) is…

Q: An economist estimates the cost function for Redwood Hill Farm, LLC as shown below. Redwood Hill…

A: For a specific production of a commodity, cost refers to the expense made by a producer on factor…

Q: If the break-even volume is the quantity for which the overall cost will be considered as…

A: According to, the breakeven quantity is the number of additional units sold to pay the cost of a…

Q: A labor crew for placing concrete consists of one labor foreman at $26.70 per hour, one cement…

A: Duration (D) in 8 hours. One labor cost (LC) is $26.7. One cement finisher (CF) is 29.30. one…

Q: A manufacturing plant that makes boomerangs has a fixed cost of $500/day and a variable cost of…

A: Given Data, Fixed cost of $500/day. variable cost of $40/hr.

Q: Calculate the level of average cost to produce 39 units of output if the total cost function is…

Q: The total cost C for a manufacturer during a given time period is a function of the number N of…

A: Slope = 20 Initial Value = $1020 Formula Total Cost = Fixed Cost + Variable Cost Total Cost = 1000…

Q: If both the fixed and variable costs associated with a product decrease, what will be the effect on…

A: The breakeven point is determined by partitioning the fixed costs of production by the cost per unit…

Q: A manufacturer's total cost equation per day is given by the equation TC = 440 +4q+,0001Q². If each…

A: The functional connection that exists between costs and output is referred to as the cost function.

Q: If the marginal cost is MC = 30'- +10, the fixed costs are 1, then the total cost TC= (A) Q'-e+100+5…

A: Given MC = Fixed costs = 1

Q: Based on the following function AC=(48/Q)+3Q+10, then the Fixed cost is A) 48 B) 9 C) 18/Q D) 18

A: Fixed costs refer to the expenses that are incurred for the production of goods that would remain…

Q: n the aftermath of a hurricane, an entrepreneur took a one-month leave of absence (without pay)…

A: "Since you have asked multiple parts, we will solve only the first part for you. If you have any…

Q: Define the cost function c(w1,w2 ,y) =w1×1(w1,w2.y) + w2x2(w1,w2,y). Show that the cost function is…

A: Given function C(W1,W2,y)=W1X1(W1,W2,Y)+W2X2(W1,W2,Y) Here W1=first input prices W2= second input…

Q: A firm manufactures a commodity at two different factories, Factory X and Factory Y. The total cost…

A: C(x,y) =x2 + xy + 8y2 + 700x +y = 1800

Q: a) Estimate from the graph i) the break-even points e) How would your answers for break-even points…

A: (a) The breakeven point is a situation where revenue earned by the firm is exactly equal to its cost…

Q: A study of 86 savings and loan associations in six northwestern states yielded the following cost…

A: Ans. To evaluate the variables that are statistically significant in explaining the variations is…

Q: The cost, in billions of dollars, of airing æ five-second hologram actic Chess game can be…

A: ‘Average cost’: ‘Average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: According to following information, which of the following is the total cost function in the form of…

A: Total cost is the cost that includes total fixed cost as well as a total variable cost of the…

Q: When economies of scale are large, firms can reduce their average total cost by: Multiple Choice…

A: When firms have large economies of scale, they tend to merge with other firms to make up larger…

Q: A firm's total cost function is: C = 6x2 - xy + 10y2 + 30, subject to the production quota x + y =…

A: Given:- Total cost function: C=6x2-xy+10y2+30 Production quota: x+y=34 To calculate:- Constructing…

Q: The cost function is c =q². Therefore, marginal cost equals 2q. Quantity refersto square metre of…

A: Here we have:- demand function=p=20-Q and cost function=TC=q2 Marginal cost=MC=2q since the firm is…

Q: Given the following cost functions: TC=100+60Q-3Q2+0.1Q3 TC=100+ 60Q+3Q2 TC=100 + 60Q In each…

A: TC=100+60Q-3Q2+0.1Q3 AC=TC/Q= 100/Q+60-3Q+0.1Q2 In this case FC= 100 VC= 60Q-3Q2+0.1Q3 AVC=VC/Q=…

Q: The total cost of producing q items is given by the formula C(q) = -q^3 + 40q^2 +1000, e.g. C(10)…

A: Total cost- It is the sum of all types of costs involved in the production.

Q: Define the term Cost Reduction?

A: Cost reduction is the mechanism that businesses use to cut costs and increase profits.

Q: Suppose Alaska could add 1000 MWh of wind generation—which produces for four hours during the…

A: Solve with the help of graph marginal cost curve

Q: Suppose a firm only has $100 thousand dollars to spend in purchasing iron I and copper C to…

A: A budget constraint is an economic word that refers to the total amount of products you can afford…

Q: In order to produce a new product, a firm must lease equipment at a cost of $50,000 per year. The…

A: The highest variable cost for break even on this project can be calculated as follows.

Q: Consider the following cost function: C=0.25q° - 49 + 85q + 150: When output is 16 units, average…

A: please find the answer below.

Q: In detail, What is one example of a non-linear cost function and explain what factors cause the…

A: A cost function whose graph of total cost within a relevant range is not a straight line is defined…

Q: Q (1) If the total costs function of a particular economic project is as follows: Required: Find the…

A: Given: Total Cost = 35+40Q

Q: In the aftermath of a hurricane, an entrepreneur took a one-month leave of absence (without pay)…

A: Given, Rent = $2,500 Cost of water = $1.34 per gallon Leave without pay = $5,000-per-month…

Q: A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per…

Q: Find the total-cost function c(q) given the marginal-cost function dc/dq below, if the fixed costs…

A: Given data: Fixed cost is $4000 dcdq=1q+8

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Answer: Given, Total cost function: TC=$1,000+$6X Calculation: To calculate marginal cost, derivate…

Q: In the following problem, c represents the average cost per unit, which is a function of the number…

A: Given: c=0.001q2-0.5q+50+7000/q q=15,q=25

Q: an American multinational that sells consumer electronic products, has manufacturing facilities in…

A: The amount of output at which a company's earnings are maximized is referred to as the optimum…

Q: A marginal cost fiction C'(q) is given in the figure below. If the fixed costs are $10,000,…

A: Marginal cost is defined as the cost of producing an additional unit of the output. Marginal cost is…

Q: The total cost of producing the first q items is given by the formula C(q) = -2q^3 + 60q^2 + 1000…

A: Given: Total cost function C(q) = -2q3 + 60q2 + 1000 First, we will find the average cost function…

Q: Given the following cost function: TC = 1500 + 15Q – 6Q 2 + Q3 i. Determine the total fixed cost for…

A: Given, the cost function: TC = 1500+15Q-6Q2+Q3 i) Total fixed: The cost that does not depend on the…

Q: ABC Company has a product that sells for $400 per unit and its variable cost per unit is $260.…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Q.6 To express relationship between the average cost functions, which of the following is true: (a)…

A: # We know well that the total cost function is given by the sum of total fixed cost and total…

Question

For each of the following cost-output relationships, describe the shape (U-shape, decreasing, increasing,
constant) of the average total cost and marginal cost functions (C = total cost, Q = output):
%3D
(a)
C = 42,500,000 + 2550Q
(b) C= 8.48 + 0.65Q + .00220Q2

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

Step 2 Part A

Step 3

Step 4 Part B

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 2 images

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

Again, holding the other variables constant, what would be the saving in per-student operating expenditures of an increase in enrollment from 500 to 1,000?
The cost for implementing a manufacturing process that has a capacity of 6000 units per day was $550,000. If the cost for a plant with a capacity of 100,000 units per day was $3 million, what is the value of the exponent in the cost-capacity equation?
A chemical engineer at Western Refining estimated the total cost for a diesel fuel desulfurization system at $2.3 million. If the direct cost factor is 1.55 and the indirect cost factor is 0.43, what is the total equipment cost? Both factors apply to delivered equipment cost.
The cost for construction of a desulfurization system for flue gas from boilers at a 600 MW power plant was estimated to be $250 million. If a similar system for a smaller plant had a cost of $55 million and the exponent in the cost-capacity equation is 0.67, what is the size of the smaller plant that served as the basis for the cost projection?
The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, and only the direct cost factor applies to delivered equipment cost, the total plant cost estimate is approximately: (a) $2,034,500 (b) $2,401,230 (c) $2,684,500 (d) $2,983,000
In the early and conceptual design stages of a project, what are the cost estimates called? Approximately how close should they be to the actual cost?
The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are ________________________. downward-sloping; A.more costly to produce upward-sloping; B. more costly to produce downward-sloping; C. less costly to produce upward-sloping; D. less costly to produce
The total mechanical and electrical unit costs for a library are listed as $40 per square foot, while total project cost is estimated at $119 per square foot. Based on these values, the percentage of total costs represented by mechanical and electrical costs is closest to: (a) 21% (b) 29% (c) 34% (d) 38%
Which of the following best defines a sunk cost? A. Costs that have already been incurred and cannot be recovered. B. The variable costs associated with increasing production. C. The total costs including both fixed and variable costs. D. Future costs that are expected to be incurred as a result of current decisions.