The margnal oost of a product can be thought of as the cost of producing one addtional unt ut output For ample a magina cost of producing the So product is 20ot 20 inere prod d u pSuppose the marginal cost C in dolars) to produce x thousand med players is gven by the function C) 1so00A How many players should be produced to minimie the marginal cost?D. What is the minimum marginal cost? A. How many players should be produced to minimize the marginal cost?B. What is the minimum marginal cost?

Given: The marginal cost of producing the 10th product is = $6.20 The production increases from =…

The margnal oot of a product can be thought of as the cost of producing one adonal und of oout For eamptehe margil colof producing the So produt a 20 d m Suppose the marginal cost C n dla)t producexthousand med yer gven t hoion Co -5800 A How many players should be produced to mininthe mgal co a. What is the minmum margeal cost?

The margnal oot of a product can be thought of as the cost of producing one adonal und of oout For eamptehe margil colof producing the So produt a 20 d m Suppose the marginal cost C n dla)t producexthousand med yer gven t hoion Co -5800 A How many players should be produced to mininthe mgal co a. What is the minmum margeal cost?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
What is die difference between accounting and economic profit?
a) Assume that the output of a company is given by y (K, L) = K^0.5 * L^0.5, where the amount of capital on shortterm is given by K = 1 and wage costs are given by w = 1. Calculate and illustrate themaverage variable costs and marginal costs (marginal costs).b) In addition, assume that the price of capital is given by r = 1. Calculate the average totalsthe costs and illustrate using a figure where you also include the marginal cost asyou found in a). Comment on what you find.
An SMSE has a production process with fixed lot size A. The table belowshows the total output and the number of workers:No. of Workers (L) Total Output (Q) 0 0 1 10 2 30 3 50 4 56 5 59 6 60 7 60 8 58(a) Determine marginal productivity of labour and average productivity oflabour for each unit of labour. (b) Show the three stages of production (c) Suppose the market price of the output Rs. 150 and the wage rate isRs. 900, how many workers would this firm hire? What if the pricedecreases to Rs. 100?(d) Suppose the market price increases to Rs. 250, what is the highestwage rate the firm would be willing to pay to…
(a) Derive the first order condition showing how much labor and capital a producer should use to minimize the total costs of producing a given level of output. (b) What is the second order condition for the producer to achieve (a). (c) Draw a figure showing your answer to part (a) and another figure showing the opposite (i.e., a producer maximizing output with given total costs). How does either situation compare with a producer who has neither a total output constraint or a total cost constraint?
answer this question bu not on excel
Why Marginal Cost (MC) is 1?? I did my calcutation and is 2. I replace on fucntion Q = L + (5)2 = L + 25, so L = Q - 25 and put on TC = 2(Q - 25) + 20(5) So TC = 2Q - 50 + 100 = 2Q + 50, then MC = dTC / dQ = 2 You may be replaced TC = wL + rK, but this function no contains Q variable Please confirm that. Thanks
Is it cost of production or utility that governs? What is Marshalls responce? What is the argumetn he makes and how can we see this today?
Yennefer produces spells. Suppose q is the quantity of spells produced. Her Total Costs are given byTC(g)=171+g^2 and her Marginal Costs are given by MC(g)=2q. What is her minimum AverageTotal Cost?
An assembly line can produce 60 units per hour. The line’s hourly cost is $3600 on straight time (the first 8 hours). Workers are guaranteed a minimum of 6 hours. There is a 50% premium for overtime, and productivity for overtime drops by 5%. What are the average and marginal costs per unit for the following daily quantities? (a) 300. (b) 400. (c) 500. (d) 600.