Why is a cost function a derived function

Q: Marginal cost is the slope of both the average variable cost and the variable cost functions. Select…

A: Marginal cost is the change in total cost or total variable cost per unit change in output.

Q: What is AC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Average cost measures the per unit cost of production.

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Assume that the situation can be expressed as a linear cost function. Find the cost function.…

A: The total cost function comprises of variable costs and fixed costs. The fixed costs remain the same…

Q: Graphically show the relationship between the average total cost, variable cost and marginal cost…

A: Below are the formulas: AVC=TVCQATC=TCQMC=TCn-TCn-1 Where, AVC = Average variable cost TVC= Total…

Q: When the marginal product is greater than the average product, the average product is . .. . .. ..…

A: In a market when a firm produces output using variable inputs, there is a connection between total…

Q: Find the marginal cost function. C(x) = 174 + 1.7x The marginal cost function is C'(x) = ||.

A: The cost function is: C(x) = 174+1.7x

Q: Cost functions are derived from

A: # Cost function is a representation which helps in predicting the cost of good or service with…

Q: What is the difference between the explicit and implicit cost

A: Cost In popular use, cost refers to the monetary worth of products and services purchased by…

Q: For a short-run cost function which of the following statements is (are) not true?

A: The marginal cost function intersects the average variable cost function where the average variable…

Q: For the total cost function TC (q) = q³ – 30q² + 800q, find the minimum marginal and average cost.…

A: Average Cost(AC)=TCq=q3-30q2+800qqAC=q2-30q+800Marginal Cost=dTCdqMC=3q2-60q+800

Q: If a production function exhibits decreasing returns to scale, average cost will decrease as output…

A: Average cost is the per-unit cost of output.

Q: With a Cobb-Douglas production function of Y= K$L$, What are the marginal product of capital and the…

A: Y = K25L35

Q: Calculate the total cost function if average cost function is :- 36Q3 - 5Q2 + 10

A: We are given with the average cost function:- 36Q³ - 5Q² + 10 Also we know that :- TC = AC * Q

Q: When do we say that a firm is operating with least cost combination of inputs?

A: The different combinations of the resources used in the production process depend on the economic…

Q: what is explicit cost with example

A: The correct answer is given in the second step .

Q: If the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum…

A: A production function in economics describes the technological relationship between the quantities…

Q: Since marginal cost is the reciprocal of marginal product times the input price, it decreases as…

A: The marginal cost refers to the additional cost incurred on production of an additional unit of…

Q: Find the average cost function for each firm

A: Total cost is the expenditure that is incurred in the production of goods and services. It is the…

Q: What is the marginal cost, if the cost function given is C(Y)=6 a) Y? b) 3Y c) 6Y d) 12Y

A: Marginal cost refers to an additional cost that occurs from producing one more unit of output.

Q: What is MC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Marginal cost measures the change in total cost with an additional unit of production.

Q: Find the marginal cost function. C(x) = 174 + 1.7x The marginal cost function is C'(x) = ||:

A: The total cost function is: Cx=174+1.7x

Q: Explain economies of scale and how to determine if a firm is experiencing it or not from their cost…

A: In a market, economies of scale is considered as one of the competitive advantage of a firm.

Q: If output q= 4(√L) then marginal product of L( the slope of the q function) is ........ and when L=9…

A: The marginal product of labour is the increase in output that occurs when an additional unit of…

Q: For the cost function below, where C is the cost of producing x units of a product, find the…

A: Power Rule: d/dx (xa) = axa-1 where a is constant. And MC = C'(x)

Q: In a production process, an excessive amount of the variable input relative to the fixed input is…

A: Short-run production: Under the short-run production, there are both factor inputs i.e. Fixed and…

Q: The total cost function is : C= 2x3+4x2+2 Find the marginal cost of C?

A: Given: C= 2x3+4x2+2 Where, x is the number of units that has been produced.

Q: (Type a whole number.) The expression for the marginal cost function is (Simplify your answer. Type…

A: Total cost is the sum of fixed and variable costs. Variable costs change according to the quantity…

Q: Find total cost if output is 39 units and average cost is $22

A: The Given information is as follows:- Output of firm = 39 units  Average cost = $22  We have to find…

Q: The average product of labour is diminishing when: The marginal product of labour is diminishing. а.…

A: The firms, and businesses tend use various factors of production, and raw materials in order to…

Q: The cost function of a firm is given as C1 = 400 + 200 + 4Q" using this cost function what is the…

A: here we calculate the efficient scale of the firm by using the cost function so the calculation of…

Q: Show the relationship between production function and cost function

A: Production function refers to the quantities of a physical product to the quantity of factors of…

Q: Average total cost decreases when marginal cost is average tot. less than greater than equal to

A: Average cost(AC) is the division of total cost(TC) by the total quantity produced. It is the…

Q: An is a collection of input bundles that yield the same output level

A: An Isoquant is a collection of the input bindles that yield the same output level

Q: Define Average unit cost,

A: There are different types of cost in production, total cost, average cost and marginal cost. Total…

Q: Does the MRTS of the production functions Q=L,K decrease? In this case, does the marginal product of…

A: Answer -

Q: is it true that the marginal cost curve is represented by a quadratic equation if the total cost…

A: When a firm generates output to earn revenue, it tries to serve an output level at which it is able…

Q: Consider a linear, increasing function for total costs. If there are fixed costs, which one of the…

A: Answer: A (Marginal cost is always falling) Explanation: The marginal cost will be constant in the…

Q: What is the difference between a fixed input and a variable input?

A: Inputs are the resources that are used in the production of output. There are generally four inputs…

Q: an interest payment on a loan to a firm is an explicit or implicit cost?

A: The implicit cost is an indirect cost defined as the opportunity cost of utilizing a firm's…

Q: Show that the r/ship between production function and cost function.

A: Production function demonstrates the output level that can be produced using different quantities of…