Show that the r/ship between production function and cost function.

Q: why is the fixed cost 10?

A: Fixed cost doesn't change with the change in the number of output.

Q: What is the average total cost when producing three units? average total cost: $

A: What is the total cost when producing zero units.

Q: Consider the following production function: Q=KªLB a) Derive the cost function b) Draw the AC and MC…

A: * ANSWER :- * A)        at eqm, MRTS = w/r                         MRTS = MPL / MPK

Q: Define the term semi-variable costs?

A: The costs incurred by a producing agent in the procurement of factor inputs for the production of a…

Q: Find total cost if fixed cost and variable cost are $300 and $100 respectively

A: The data presented in the question above is:- Fixed cost of firm = $300 Variable cost of firm = $100…

Q: For a cost function C = 100 - 100 - 02 the average variable cost of producing 20 units of outout is

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

Q: Referring to the cost table above, what is the average total cost if quantity produced equals 300…

A: Total cost of a firm is the cost incurred by the firm by producing a certain amount of output. The…

Q: A company is planning to manufacture mountain bikes. The fixed monthly cost will be S100,000 and it…

A: Given that fixed monthly cost for manufacturing mountain bikes is $100,000. Cost of each bicycle is…

Q: referring to the cost table above, what is the average variable cost if quantity produced equals 400…

A: Average variable cost varies with the output produced

Q: What is the difference between economies of scope and scale. Also include in your discussion some…

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: How would the following cost be classified? Rent that would be received if an owned building were…

A: In economics, costs are classified based on their impact on an individual such as direct cost or…

Q: Identify a fixed cost

A: A fixed cost is referred to as the cost which would not change due to an increase or decrease in the…

Q: (2) Minimize the average cost for the following total cost function (TC) by finding out (a) average…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: How can we determine the Cost Basis?

A: Calculation of the cost basis of an investment shows the capital gain or loss on it. It indicates…

Q: What is meant by a sunk cost? Give typical sunk costs for an IT project.

A: Sunk costs are a type of fixed costs and they do not change irrespective of the levels of…

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: referring to the cost table above, what is the total cost if quantity produced equals 100 units? a.…

A: Total cost is the overall cost which incurs in the course of production.

Q: By doubling a machine's inputs, the output increases three times. How does this affect cost and what…

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

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: Cost is minimized when isoquant is tangent to the isocost line. The isoquant Q = 100 is tangent to…

Q: Define the term Cost Reduction?

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

Q: Compare and contrast: a) Average fixed cost vs. Total fixed cost b) Total variable cost vs. Average…

A: Differentiate between Average fixed cost and Total fixed cost:- Average fixed cost Total fixed…

Q: how to calculate total cost analysis

A: Objectives to calculate total cost analysis : Understand and define the critical variable and fixed…

Q: As long as marginal cost is below average cost, average cost will be a. falling b. rising. .…

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

Q: Which costs are measured on per-unit basis: fixed costs,averagecost,average variable cost,variable…

A: Cost(C) is an important component of production. The ‘cost of production’ refers to the total…

Q: Average total cost decreases when marginal cost is average tot. less than greater than equal to

A: Average cost(AC) is the division of total cost(TC) by the total quantity produced. It is the…

Q: What is the average variable cost of producing 400 units of output?

A: Answer: Given that:      Labor  Output   Marginal Cost  Variable Cost  Fixed Cost  0  0    0  5…

Q: What would be the value of average cost if total cost is $1600 and output is 24 units

A: The information being given is:- Total cost = $1600 Output = 24 units  We have to calculate the…

Q: For a constant returns to scale production function a. marginal costs are constant but the average…

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

Q: List some practical limits to economies of scale; that is, when should a plant stop growing?

A: Economy of scale is the improvement that a company acquires from the size or scale of manufacturing.

Q: What will be the value of average fixed cost if total fixed cost is $350 and the output is 50

A: Given information: Total fixed cost: $350 Output: 50 To find: Average fixed cost

Q: Total Cost = C(x) = 0,005x^3 - 0,49x Lnx +5x Find : a. Average Cost Function b. Average Cost…

A: Average cost (AC) = C(x) / x AC = 0.005x2 - 0.49 Lnx + 5

Q: Why the average variable cost (AVC) and average total cost (ATC) curves are U-shaped (decreasing,…

A: Average variable cost (AVC) The average variable costs (AVC) are calculated by dividing total fixed…

Q: The average fixed cost curve is labeled: a L b. II. C. III d. IV

A: Average fixed cost is the cost of fixed assets of the firm like building, land, furniture,…

Q: The differences between total costs and variable costs is given by sunk costs

A: ANSWER STEP-1 The Differences Between Total Costs And Variable Costs Is Given By Sunk Costs True…

Q: If a hospital cafeteria is the activity to receive indirect cost allocation for the year, cost…

A: Indirect cost is the cost of something that is not directly involved in making a particular product…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

Q: A company manufactures mountain bikes. The research department produced the marginal cost function…

A: Answer to the question is as follows:

Q: The variable cost per unit varies with output, whereas the fixed cost per unit is constant." Do you…

A: Total variable cost (TVC) is the total cost component that changes with a change in output, so AVC =…

Q: Explain graphically cost behaviour in a fixed size plant?

A: Fixed cost refers to the cost that the firm needs to bear always that does not change with the…