To maximise profits, a competitive firm has a cost function, C(q) = 4q2 + 95 and produces 33 units in order to maximise profits. Although the price of output does not change, the firm decides to build a second factory with the cost function C(q) = 7q2 + 45. To maximise its profits, how many units should it produce in the second factory?

To maximise profits, a competitive firm has a cost function, C(q) = 4q2 + 95 and produces 33 units in order to maximise profits. Although the price of output does not change, the firm decides to build a second factory with the cost function C(q) = 7q2 + 45. To maximise its profits, how many units should it produce in the second factory?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQ

See similar textbooks

Similar questions

A competitive firm has a single factory with the cost function C(q) = 3q2 + 62 and produces 25 units in order to maximise profits. Although the price of output does not change, the firm decides to build a second factory with the cost function C(q) = 7q2 + 44. To maximise its profits, how many units should it produce in the second factory?
If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I is $5, 1. Count the units of each input so that the total cost incurred is minimum. 2. If the firm wants to produce 120 units of output, what is the minimum total cost?
Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What is the marginal cost of producing 10 units?
For the cost function C(Q) = 75 + 4Q + 2Q2, the marginal cost of producing 5 units of output is:
For the cost function C(Q) = 500+12Q+4Q2+Q3, what is the marginal cost of producing the eighth unit of output?
The total cost of producing the first q items is given by the formula C(q) = -2q^3 + 60q^2 + 1000 (For example, C(10) gives the cost of the first 10 items.) a.) Find the average cost of producing items 6 through 10 b.) Find the marginal cost when q = 8
An accountant for a car rental company was recently asked to report the firm's costs of producing various levels of output. The accountant knows that the most recent estimate available of the firm's cost function is C(Q) = 100 + 10Q + Q^2, where costs are measured in thousands of dollars and output is measured in thousands of hours rented. a. What is the average fixed cost of producing 2 units of output? b. What is the average variable cost of producing 2 units of output? c. What is the average total cost of producing 2 units of output? d. What is the marginal cost of producing 2 units of output? e. What is the relation between the answers to (a), (b), and (c) above? Is this a general property of average cost curves?
Given a cost function C(x), which returns the total cost of producing x products, the average cost function is represented by the notation ??= ?(?), compute the cost per item. Given that a local retailer is C(x)= 80x + 150, r ≥ 0 on ?? < 100.
Consider a simple three-step manufacturing process as illustrated in the figure given. Assuming the demand is 1,000 units, what is the input needed to meet the demand? Suppose the cost of loss is $5 in process 1, $10 in process 2, and $US 15 in the process 3. The defect rates are 3%, 5% and 7%, respectively. Calculate the total cost of the loss in the system provided and in the system where the scrap rates are reversed. which system would be preferable?
At zero level of production, _______ cost is always zero
For the cost function C(Q) = 100 + 4Q + 19Q2 + 2Q3, what is the marginal cost of producing the fourth unit of output?
To minimize costs in the short run, a firm should operate where which of the following optimizing conditions is true? Marginal productivity of labor is at a maximum Marginal product relative to own price of every input is equal Marginal revenue product of the variable input equals its marginal cost