EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 8, Problem 8SP
To determine
Identify the marginal cost of the second day pass.
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Showing your analytical work clearly in a step by step manner is a must. Otherwise points will be deducted. You can use Excel or any other graphing tool.
A startup software company has indicated its cost, c(x), and revenue, f(x), as given below, such that x is the number of lines of programing code (units in 1000 lines).
c(x) = 80000 - 2(x-200)2
f(x) = (x-10)3 + (x+10)2
Find the marginal cost analytically, and draw its graph
Find the marginal revenue analytically, and draw its graph
Solve for the x point where marginal cost is equal to marginal revenue analytically. Comment why is this point significant analytically.
Write the profit function and draw its graph
Is the profit function concave up or concave down?
Answer all questions neatly please
Jack scalps lawns in the neighborhood for $36 per house. He does ten houses per day. He is incurring total costs of $400 per day, of which $100 is fixed. The marginal cost per house is constant.
(i) What is the value of the marginal cost associated with scalping the lawn of one house?
(ii) What are profits equal to at the profit-maximizing level of output?.
Why is incremental cost pricing the correct pricing method?
Chapter 8 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- The reason the marginal cost curve eventually increases as output increases for the typical firm is because of Multiple Choice diseconomies of scale. diminishing marginal utility. diminishing marginal returns. increasing opportunity cost.arrow_forwardShould a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.arrow_forwardFor the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.00 per slice?arrow_forward
- A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?arrow_forwardWhen output increases from 10 to 11, total cost increases from $60 to $65. Fill in the blank. Round to the nearest integer if necessary. The marginal cost of increasing output from 10 to 11 is $ ??arrow_forwardThe table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If the company’s fixed costs are $30, what is the marginal cost X? Quantity Variable Cost Fixed Cost Total Cost Average Variable Cost Average Total Cost Marginal Cost 0 0 $30 1 $10 $30 2 $25 $30 X 3 $45 $30 4 $70 $30 5 $100 $30 6 $135 $30 Group of answer choices $15 $55 $5arrow_forward
- The cost to produce x units is given by C ( x ) = 0.03x2 + 8.8x + 1600 + 6.8 square root of x. Find the marginal cost.arrow_forwardConsider the table below that describes the costs associated with producing a good (Q). Q Total Variable Cost Total Cost 0 0 30 1 30 60 2 50 80 3 65 95 4 77 107 5 87 117 6 100 130 7 120 150 8 160 190 9 220 250 10 300 330 What is the value of the marginal cost of producing the second unit? Enter your answer as a number below. Do not include a "$" sign.arrow_forwardYou have charged your client $8,650 on a cost plus percentage purchase of two sofas, two lounge chairs, and three occasional tables. If the occasional tables were 30% of the total client cost, and all cost the same amount, what was the net price of these tables at a 15% markup? Explain.arrow_forward
- For the given cost function C(x)=250√x+ x^2/3375 -finda) The cost at the production level 1100 (ANSWERED, 8650.079) b) The average cost at the production level 1100 (ANSWERED, 7.86) c) The marginal cost at the production level 1100 (ANSWERED, 4.42) Since I have the answers for the three subparts above, how would I answer the two subparts: d) The production level that will minimize the average cost. e) The minimal average cost.arrow_forwardThe total cost function of a firm producing Jeans is TC = 0.5Q3− 15Q2 + 175Q + 100, where Q is output. a.What are the total variable cost (TVC) and the total fixed cost (TFC) in this case? b.The average cost is given by AC = TC/Q, the average variable cost is AVC = TVC/Q and the average fixed cost is AFC = TFC/Q. Find the AC, AVC and AFC functions. c. If the marginal cost is MC = 3(0.5)Q2 - 2(15)Q + 175, then roughly sketch the graph of MC, AVC and AC (If you know how to use Excel, then you can get more accurate graphs). What relationship do you observe between the three cost curves?arrow_forwardWe expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. Why?arrow_forward
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