Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 1CP
To determine
Calculate the marginal benefit and marginal cost when H is equal to 4.
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Consider the following quadratic (potential cost) function
If marginal cost is greater than average total cost, then average total cost must be increasing.
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A small bank is trying to determine the number of tellers to employ. The total cost of employing a teller is $100 per day, and a teller can serve an average of 160 customers per day. On average, 210 customers arrive per day at the bank, and both service times and interarrival times are exponentially distributed. If the delay cost per customer day is $200, how many tellers should the bank hire?
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- For the cost function C(Q) = 200+3Q2+4Q3, what is the average fixed cost of producing 10 units of output? 18.31 42.12 212.61 20arrow_forwardIn detail, What is one example of a non-linear cost function and explain what factors cause the non-linearity.arrow_forwardDetermine the combination of input factors K, L that minimizes the cost of producing Q = 1000.arrow_forward
- The weekly cost C of producing x units in a manufacturing process is given by C(x) = 60x + 2250. The number of units x produced in t hours is given by x(t) = 50t. (a) Find and interpret (C ∘ x)(t). (C ∘ x)(t) = (C∘x)(t) represents the cost of production as a function of time. (C∘x)(t) represents the production as a function of cost. (b) Find the cost of the units produced in 4 hours.$ (c) Find the time that must elapse in order for the cost to increase to $15,000. hrarrow_forwardIf C = 0.0001Q2 + 3Q + 6000 is a total-cost function, find the marginal cost when Q = 100.arrow_forwardquestion 8 For each of the following situations, Find the Total Cost function, TC(q) Identify the optimal input mix, L* and K* for the given q. A) q = 2*MIN(L,5K); w = 8, r = 10; i) (5 points) TC(q) = __________________ ii) (4 points) q = 20 L* = _________________ K* = _________________arrow_forward
- The average fixed cost curve will never intersect with either the horizontal or vertical axis.arrow_forwardA parking lot charges $2 per hour for the first 4 hours, then $3 per hour after that. Which equation(s) describes the total cost y as a function of the hours x? A) y= 3x+8 B) y= 2x+12 C) y= 2x for x of 4 or less / y= 2x+3x for x of 5 or more D) y= 2x for x of 4 or less / y= 8+3 (x-4) for x of 5 or morearrow_forwardHow many units of output should each plant produce? Please specify your answer as an integer.arrow_forward
- The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are ________________________. downward-sloping; A.more costly to produce upward-sloping; B. more costly to produce downward-sloping; C. less costly to produce upward-sloping; D. less costly to producearrow_forwardWith a production function of Q = L + 2K if r = $4 and w = $4, how many units of capital and labor will be optimally utilized? All K and no L. All L and no K. Equal amounts of K and L. A combination of K and L not represented above.arrow_forwardEconomic cost can best be defined as: Select one: a) All costs excluding labour costs b) Any obligation to labour or material suppliers c) All costs exclusive of payments to fixed factors of production d) Compensations which must be recieved by factor of production owners to insure their continued supply e) Any contractual obligations which results in a flow of money expenditures from an enterprise to factor of production suppliersarrow_forward
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