Q: rease in average
A: Economies of scale are the cost advantages being reaped by companies when production in turn becomes…
Q: 2-lf you have the following production function Q=f( L,K), answer the following: 1. Is this function…
A: Given: Q=f(L,K)
Q: 3. Show that, for the two-input CES production function 1. 1-p
A: The CES Production Function refers to a neoclassical production function that shows constant…
Q: Our closed economy has a production function Y = A•F(K,LxE), where Y, K, L, E & A all have their…
A: Note: As you have asked for the part B of the question we have done it, we value your precious time…
Q: Olivia owns and manages an accounting firm. In Olivia's business, an example of physical capital…
A:
Q: When long-run AC is falling, it is tangent to short-run AC curve: of the
A: # when a firm decides how to production must proceed in the long run it always emphasis on the long…
Q: Which of the following is correct about marginal and average products? A) When the average product…
A: Marginal product refers to addition in total output and when more unit of variable input is used in…
Q: A firm has the following production function: f(x) = ax? – bx³, where x is the only input, a=2 and…
A: The production function is the maximum output that can be produced with the given technology and the…
Q: Bridget's Brewery production function is given by Y(K,L) = 100(KL)^(3/4) where K is the number of…
A: Introduction, First of all we should put the values of the following in our mind That is y(k,l)=…
Q: e le öf inputs.
A: Aggregate supply curve is defined differently according to different economists. The classical…
Q: Explain why the short run production curve is a “s” shape curve. Answer in detail including graph…
A: The production function would result in the output or the total output which can be produced given…
Q: What is the increase in output that results from an increase in all of a firm’s outputs by some…
A: The increase in output that results from an increase in all of a firm's output by some proportion…
Q: Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment).…
A: a. The marginal and average product of labor can be calculated as follows: Thus, both marginal and…
Q: Olivia owns and manages an accounting firm. In Olivia's business, an example of physical capital…
A: Physical capital is defined as a factor of production that goes into making goods and services. It…
Q: What is the explicit and implicit cost? Can explicit or implicit be used for a business or…
A: Cost refers to the sum of money a corporation spends on making or producing products or services.…
Q: Explain how a firm may transition from the short-run production decision to the long-run production…
A: In short-run, Price = short-run marginal cost (SMC). The firm would produce that output at which P…
Q: QUESTION 1 Consider the following production function:
A: Consider the following production function .
Q: 2. Show that the two-input CES production function used in this lecture has DRS, CRS or IRS…
A: Constant returns to scale means as we imposed input by double amount then the output increases by…
Q: If an increase of an equal percentage in all factors of production increases output by the same…
A: The marginal product of labor (MPL) represents the effort put by the labor resource in the…
Q: What should he recommend as a short-run remedy?
A: Marginal product of labour in plant B is higher than Plant A
Q: Please inform which of following awnsers are correct for the following questions 14 and 15 just tell…
A: Average product refers to the labor contribution in the production process which is the outcome of…
Q: onsider a short run production function q = cL+K where the value for c =: sing L units of labour and…
A: Returns to scale measures the proportionate change in output if all inputs are changed by the same…
Q: Consider this production function. Study hours 1 4 5. 10 11 12 13 14 15 or more Grade 20 33 42 50 57…
A: [1] Lets discuss options one by one:-a. UK workers have more free time than Greek workers.Ans. UK's…
Q: What is the Short run and long run period in the production function of the economics
A: In simple words we can say that the Short run period in the production function of the economics…
Q: 1. Show that the two-input Cobb-Douglas production function used in this lecture has DRS, CRS or IRS…
A: As asked Q1 is solved below: To show that two input Cobb-Douglas production function has IRS, DRS…
Q: Complete the table directly below by calculating MP and AP. Inputs of L TP MP AP 0 0 1 15 2 34 3…
A: MP is nothing but the additional product which arises when one unit of extra labor is employed. MP =…
Q: a. Complete the average product and marginal product columns in the table above.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is an example of an implicit cost? A) the cost of fuel and materials. B) the…
A: Implicit cost is also called opportunity cost. It is the cost that is incurred but not reported…
Q: What is the impact of a fall in productivity on costs. Explain further.
A: The primary aim of the business is to maximize the profit and reduce the cost. The efficiency of the…
Q: -. All inputs can be varied in O Short run
A: To find : When do input varies.
Q: 45. The short run A. O Is less than one year B. O Requires that at least one input is fixed C. O…
A: Labour includes physical and mental effort by humans throughthe use of human capital (education,…
Q: We classify Three Possible Long-Run Average Cost Curves for a Multiplant Firm; given the following…
A: A planning curve is a long-run average cost curve. This is because a company aims to create an…
Q: a. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the…
A: The three criteria can be explained as: The convex shape isoquant- The nature of the production…
Q: The table below shows the prices of the inputs and outputs for the production of a road bike. Ianuf…
A: a) The value added by supplier of raw materials is the sum of raw materials value ie…
Q: What is the distinction between the laws and of returns and the returns to scale?
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Q: hat is the difference between capacity and automation.
A: Production is the technique of adding different content and immaterial components to create a…
Q: onsider a short run production function q = cL+K where the value for c=3, sing L units of labour and…
A: Marginal productivity of labor depicts how there is change in output due to additional unit of…
Q: In the production process, both the average product and marginal product of the variable input rise…
A: The average product is the average amount of output produced by a variable input. It is computed as…
Q: Complete the following table: Marginal Quantity Of Average Product of Product of Variable Total…
A: Output =Output of last input + MP of this input Output (2)=50+30=80 and so on Or Output =AP* Number…
Q: The additional cost of producing one more unit of output is calicu
A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.
Q: Explain what a production function is. What is the concept of diminishing marginal product?
A: Production Function: The function that explains the relationship between the physical inputs and…
Q: mhich of the following diagrams shows isoquants for a Cobb-Douglas production function? X2 X1 X1 X2…
A: Isoquant- It is the curve that represents different combination of two inputs that produce maximum…
Q: Question 1: ASsume a firm wants to achieve an output level of 5400 units. This is the firm's…
A: A level curve of a multivariate function f is the collection of points where the value of the…
Q: 1) Consider the long-run productior of shirts. The cost of the indivisible inpu 3 used in the…
A: Cost of invisible input used in the production of shirts = $400 per day. Addition cost of one shirt…
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- Given: Desktop Publishing Software Inc, develops and markets software packages for business computers. Although, sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severly retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out". The marketing and accounting departments have provided management with the following monthly demand and cost information: P = $1,000 - $1Q TC = $50,000 + $100Q Question 1: Find; Derive the Marginal Revenue & Marginal Cost Equations TR = ___________ MR = ___________ TC = ___________ MC = ___________ Question 2: Profit Maximization: Solve for Monthly Q, P, TR, TC and Profit Q = ___________ P = ___________ TR = __________ TC = __________ PROFIT = __________ Question 3: Revenue Maximization: Solve for monthly Q, P, TR, TC, and Profit Q = ____________ P = ____________ TR = ___________ TC = ___________ Profit = __________Now compute the missing marginal revenue from the table. The table is reproduced here for convenience. Note: answers should be integers only (i.e 1,2,3,4,5,6,.... etc). Based on the information you computed, what quantity should the firm produce to maximize profits? Quantity Total Cost ($) Total Revenue ($) Marginal Cost ($) Marginal Revenue ($) 0 8 0 -- ? 1 9 8 ? 2 10 16 ? 3 11 24 ? 4 13 32 ? 5 19 40 ? 6 27 48 ? 7 37 56 ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What is the profit maximization for apex firm if we have the following data quantitiy /unit ={0,1,2,3,4,5,6,7,8,9,10} total variable cost =[0,100,180,220,300,390,500,640,800,1000,1250} 2. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?3. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?4. Comment on your answers to parts (2) and (3)
- (a) Assume that although Marrow firm is presently making accounting profit it is experiencing negative economic profit in its current venture. The owner of the firm does not understand what this means and asks you to explain to him. (b) Massy super store, wishes to increase its total revenue. It offers 30%discount on every item it sells.Group A Group BVolume of sales before the 1.79 million 1.76 million 30% discount Volume of sales after the 1.84 million 1.86 million 30% discount(a) Using the midpoint method, calculate the price elasticities of demand for groupA and group B.(b) If Massy wants to increase its total revenue, which group should it offer the discount to?Give typing answer with explanation and conclusion Given the revenue function R = 125Q - 2.5Q2, what is marginal revenue at Q = 23? A. 0 B. 0.8 C. 5 D. 10Suppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]
- The economic profit of a perfectly competitive firm is less than its total revenue equals its total revenue is greater than its total revenue O is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Suppose a food company has both food and store divisions. The food divisionproduces burgers that are sold downstream at the store. Assume that the storesells 1,000 burgers at $10, 2,000 burgers at $9, 3,000 at $8, and so on up to10,000 burgers at $1. The price the food division charges for a burger is$3.50. What will be the profit-maximizing price for the entire company? How muchprofit will the company make? What is the revenue-maximizing quantity for thestore?Can you help me with the Question D, E, and F? I would like check for the answer. So you don't have to calculate the questions for A, B, and C because I already figured out the answers. Thank you for the help. Rosebud Private Limited produces cooking oil and has many competitors producing close substitutes products. The firm has the following revenue and cost functions. TR = 15Q – 0.3Q2 TC = 8Q + 0.02Q2 Where Q is output and price is in $. A. Identify the market structure the firm is operating in. Explain your choice. B. Determine the output that maximizes total revenue. C. Using marginal approach, determine the output and price that maximizes profit. (Hint: TR=P.Q) D. Determine the profit/loss of the firm. E. Based on approach in (c), illustrate using completely label diagram for situation that you obtain in (d). F. Is the firm operating in the short run or long run? Give your reason
- PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. (need answers of part 3 & 4) Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? 3. What is the shutdown price and quantity for this firm? 4. Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above.2. ABC Manufacturing has provided you with their demand function Qd = 2000-2p and supply function Qs = 60+5p, please answer the following questions: a. What is the company’s marginal revenue function? b. At level of output is profits maximized? c. At what price is profits maximized? d. What is total revenue at the profit maximization level of output?Question 1: Given the following cost function:TC = 1500 + 15Q – 6Q2 + Q3i. Determine the total fixed cost for producing 1000 units of output and 500 units of output.ii. What is AFC at:a) 1000 units of outputb) 500 units of outputiii. Determine TVC, AVC, MC and AC at 50 units of output. Question 2: The demand function equation faced by PTCL for its computers is given by:P = 50,000 – 4Qi. Write the marginal revenue equationii. At what price and quantity marginal revenue will be zero?iii. At what price and quantity will total revenue be maximized? Question 3: Suppose the following demand and supply function:Qd = 750 – 25PQs = -300 + 20 Pi. Find equilibrium price and quantityii. Find consumer and producer surplus Question 4: Given production function:Q = L 3/4 . K1/4Find out the optimal quantities of the two factors using Lagrangian method, if it is given that price of labor is Rs.6 and price of capital is Rs.3 and total cost is equal to Rs.120.Question 5: Given the cost function isTC = 6L…