Bundle: Managerial Economics: Applications, Strategies And Tactics, 14th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
14th Edition
ISBN: 9781337198196
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter B, Problem 6E
a.
To determine
To evaluate the marginal revenue and marginal cost functions by using the demand functions from exercise 5.
b.
To determine
To evaluate theMarginal revenue equals marginal cost and the economic principle that profits are maximized at the output level where marginal revenue equals marginal cost is illustrated.
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10) Find the marginal and average functions for the following total functions and graph the
results.
Total – cost function: C = 3Q2 + 7Q + 12
Total – revenue function: R = 10Q – Q?
Total – product function: q = aL +bL² – cL³
Question 2: For this problem you will analyze the elasticity of substitution and the
isoquant graphs for two different production functions
F₁(K, L) = 4K + 2L
F₂(K, L) = K²/³ [1/3
(a) Graph the isoquant for F₁(K, L)
=
4K+2L that represents an output of 8. Be
sure to show your work and label the axes clearly
(b) What is the marginal rate of technical substitution (MRTS) for F₁ ?
(c) What is the elasticity of substitution for F₁ ? /
1a) Consider the production function Q = 0 + 6L + 5L2 - .2L3. The range of labor covering Stage II of production is ____ to ____. You can use Excel spreadsheet or otherwise to answer this question.
b) A firm’s production function is Q = 600*L -1.0*L2. The firm is currently employing 83 units of labor. What is the elasticity of production? You can use a excel spreadsheet or otherwise to answer this question
c) A firm’s LRTC = 600Q - .5Q2 + .001Q3. At what level of output does the firm experience minimum efficient scale? Use either Excel Spreadsheet, Excel Solver or Otherwise
Chapter B Solutions
Bundle: Managerial Economics: Applications, Strategies And Tactics, 14th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
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