HomeworkLib
Question

3) Suppose the cost curve for a firm producing sneakers is TC 1010 q - 4q- + 3.1 (10 points) What are the firms fixed costs,

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

TC = 10+10q-4q^2+q^3

FC = 10 (Constant value in Cost function)

VC = 10q-4q^2+q^3 (The part of the cost function dependent on output)

MC =dTC/dq 10-8q+3q^2 (First Order Derivative of cost function) (alternatively we sometimes MC = Change in TC/Change in Q is used for simplification, here MC = dTC/dq has been used as the function is given)

800.0 700.0 Costs Q 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 FC 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 VC

0 0
Add a comment
Know the answer?
Add Answer to:
3) Suppose the cost curve for a firm producing sneakers is TC 1010 q - 4q-...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 100...

    The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 100 + 10Q. What is the; a. fixed cost (FC), b. variable cost (VC), c. marginal cost (MC), d. average fixed cost (AFC), e. average variable cost (AVC), f. average total cost (ATC)?

  • Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital a...

    Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital are used in the short run. Labor costs $20 per unit. 7. Total Cost Average Average Marginal Variable Cost |(MC) Fixed Units of Units of Variable Average Fixed Labor (L) Cost (FC) Cost (VC) (TC) Total Cost Output (ATC) (Q) Cost Cost (AFC) (AVC) 0 0 1 2 2 4 3 6 4 8 10

  •    Labor TVC TC MC AFC AVC ATC 25 50 75 100 25 125 (a) Complete...

       Labor TVC TC MC AFC AVC ATC 25 50 75 100 25 125 (a) Complete the blank columns (5 points). Please create a table like mine and fill it. (b) Assume the price of this product equals $10. What's the profit-maximizing output (q)? (3 points). Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing a where P=MC.(2 points) (c) What is the profit? (3 points) TOTAL COST (TC) - the...

  • Finish the table. MPL: Marginal production of labor TC: Total cost MC: Marginal Cost AFC: Average...

    Finish the table. MPL: Marginal production of labor TC: Total cost MC: Marginal Cost AFC: Average fixed cost AVC: Average variable cost ATC: Average total cost lormal text - Times New... - 12 B I VA G E A E 1 E- Labor Week 6 Assignment: Production Costs 20 Points) Output MPL FC VC TC MC AFC AVC ATC (Q) 0 25 WN 25 50 75 100 13 25 15 F 16 25 125 1. Complete the table above. (4...

  • suppose a firm's total cost of production (TC) is tc=2Q^2 mc=4Q Suppose a firm's total cost...

    suppose a firm's total cost of production (TC) is tc=2Q^2 mc=4Q Suppose a firm's total cost of production (TC) is TC = 20 MC = 40 What do the firm's average total cost curve, average variable cost curve, and marginal cost curve look like? Draw the following curves from 0 to 5 units of output. 1.) Using the line drawing tool.graph the firm's average total cost curve and label it ATC 2.) Using the line drawing tool, graph the firm's...

  • A firm’s short run cost function is C(q)=150q-4q^2+0.4q^3+275 . Determine the fixed cost, F; the average...

    A firm’s short run cost function is C(q)=150q-4q^2+0.4q^3+275 . Determine the fixed cost, F; the average variable cost, AVC; Average Fixed Cost, AFC; Average Cost, AC; and the Marginal Cost, MC.

  • D Question 7 1 pts Use the following graph that shows the marginal cost (MC) curve,...

    D Question 7 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average Total Cost (ATC) curve. What is the variable cost when the quantity (Q) being produced is 6? P MC ATC /AVC $15 $11 $8 Q O $66 $8 O $15 $11 Question 8 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average...

  • Question 3.(12 points). Suppose a firm has a short-run cost function: C(q) = 1000 + 2009...

    Question 3.(12 points). Suppose a firm has a short-run cost function: C(q) = 1000 + 2009 - 5q2 + 0.573. What are the fixed cost (F), the variable cost function (VC), the marginal cost (MC), the average cost (AC), the average fixed cost (AFC) and the average variable cost (AVC)?

  • This table describes the cost structure for a firm producing cakes. Q (number of cakes produced)...

    This table describes the cost structure for a firm producing cakes. Q (number of cakes produced) 0 Fixed Costs, FC Variable Costs, VC 0 Total Costs, TC Average Variable Costs, AVC Average Total Costs, ATC 1 40 70 70 40 2 3 4 5 270 330 What is the average total cost (ATC) of producing 5 cakes? $80 $50 $40 $20

  • L K Q VC FC TC AVC AFC ATC MC 0 5 0 0 5 5...

    L K Q VC FC TC AVC AFC ATC MC 0 5 0 0 5 5 1 5 2 2 5 7 1.00 2.50 3.50 1.00 2 5 6 4 5 9 0.67 0.83 1.50 0.50 3 5 12 6 5 11 0.50 0.42 0.92 0.33 4 5 19 8 5 13 0.42 0.26 0.68 0.29 5 5 25 10 5 15 0.40 0.20 0.60 0.33 6 5 28 12 5 17 0.43 0.18 0.61 0.67 7 5 29 14...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT