The Mini-Case “Economics of Scale at Google” describes economies of scale for Google Cloud Storage. The cost function for this service is well approximated by C=F +cq, where C is total cost, F is fixed cost, c is a constant, and q is output. What is marginal cost for this cost function? What is average cost? Over what range of output does Google have economies of scale?

14. The research department of Acme, Inc. has determined the marginal cost function for one particular item to be m(x) = 0.12e0.04x dollars per item, where x is the number of items produced. If Acme's fixed costs amount to $3,000, find the cost function, C(x), for the company.

After running a successful pineapple business, Diddy looks for a new business venture. Now he wants to run gold mining business named "Diddy Bling Bling" which produces/sells raw gold. For simplicity, two types of inputs are required to produce raw gold (workers and gold mine). In short- run production, the size of gold mine is fixed while the number or workers can vary. After consulting his business consultant, Diddy computes the following cost table. The quantity of raw gold (kilograms) Averaged Total Cost (gold mine size=small) Averaged Total Cost (gold mine size-medium) Averaged Total Cost (gold mine size-Large) 1 700 1400 1800 2 600 1300 1700 3 500 1200 1600 4 400 1100 1500 5 300 1000 1400 6 400 900 1300 7 500 800 1200 8 610 600 1100 9 700 500 1000 10 800 400 900 11 900 375 800 12 1100 250 700 13 1200 400 600 14 1300 490 500 15 1400 600 400 16 1500 700 350 17 1600 800 300 18 1700 900 350 19 1800 1000 400 20 1900 1100 500 21 2000 1200 600 22 2100 1300 700 Draw Diddy Bling Bling's…

A firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a marginal cost of $50 per unit produced. Producing more than 100 units has a marginal cost of $70 per unit produced. The firm cannot produce more than 150 units. How much does it cost to produce at q=0? at  q=50? at q=100? at q=125? at q=150? Graph the firm’s marginal cost function