Please only type answer a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member

Please only type answer a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 2MC

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The demand equation for a product for a product brand of mackerel is given by the equation Qx=50-7Px+0.002I+12Py Where Qx=monthly consumption per family in cartons Px=price per carton of makerel=GHC 2.00 I=median annual family income=GHC20,000 Py=price per carton of competing brand of mackerel=2.5 Required: i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons). ii.what is the relationship between Good x and Good y? iii.what is the nature of Good x ? iv.Suppose the median annual family income increases to GHC40,000,What will be your new consumptino for Good x? v.Suppose that the price per carton of competing brand increases GHC3.00, What will be your new consumption for Good x?
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A firm faces the production function below and can buy L at Php240 a unit and K at Php4 a unit. A. If it has a budget of Php 16,000 what combination of K and L should it use to maximize output? Q = 2K 0.2 L 0.6
Q5 The rate of change of the function f(x) =x + 2 /1 − 8xwith respect to x when x = 1. (ii) The number of units Q of a particular commodity that will be produced with K thousand dollars of capital expenditure is modeled by Q(K) = 500 K^2/3. Suppose that capital expenditure varies with time in such a way that t months from now there will be K(t) thousand dollars of capital expenditure,where K(t) =2t4 + 3t + 149 /t + 2 (a) What will be the capital expenditure 3 months from now? How many units will be produced at this time? (b) At what rate will production be changing with respect to time 5 months from now? Will production be increasing or decreasing at this time?
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Suppose that the production function takes the form X = min(10L, 5K) and that a competitive firm faces a wage rate of £60 per week and a weekly capital rental of £32. (a) How much must the firm spend to produce 100 units of output, and what is the average cost of production when X = 100? (b) What is the incremental cost of producing the 101st unit of output? (c) What happens to the cost of producing 100 units of output if the wage rate and the rental cost of capital rise by 25 per cent each? What happens to the average and marginal cost? (d) What happens to the cost of producing 100 units of output if the wage rate increases by £1, or if the cost of capital increases by £1?
A coal-fired power plant can produce electricity at a variable cost of 4 cents per kilowatt hour when running at its full capacity of 30 megawatts per hour, 16 cents per kilowatt hour when running at 20 megawatts per hour, and 24 cents per kilowatt hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of 12 cents per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $50 million, but it costs only $10 million to build a gas-fired plant. a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs? b. How much will the city spend on building that combination of plants? c. What will the average cost per kilowatt-hour be if you average over all 80 megawatts that are…