The estimated short-run cost function of a Japanese beer manufacturer is C(q) = 0.8g1.8, 500 At what positive quantity does the average cost function reach its minimum? If a $400 per-unit tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? Average cost before the tax is minimized at a quantity of q = units. (Enter your response rounded to three decimal places.) Average cost with the 400 tax is minimized at a quantity of q = units. (Enter your response rounded to three decimal places.)
The estimated short-run cost function of a Japanese beer manufacturer is C(q) = 0.8g1.8, 500 At what positive quantity does the average cost function reach its minimum? If a $400 per-unit tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? Average cost before the tax is minimized at a quantity of q = units. (Enter your response rounded to three decimal places.) Average cost with the 400 tax is minimized at a quantity of q = units. (Enter your response rounded to three decimal places.)
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 3E
Related questions
Question
9
Transcribed Image Text:The estimated short-run cost function of a Japanese beer manufacturer is
500
C(a) = 0.8q'
At what positive quantity does the average cost function reach its minimum? If a $400 per-unit tax is applied to the firm, at what positive quantity is the after-tax average cost minimized?
Average cost before the tax is minimized at a quantity of q = units. (Enter your response rounded to three decimal places.)
Average cost with the 400 tax is minimized at a quantity of q =
units. (Enter your response rounded to three decimal places.)
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 with 3 images
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
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
