HomeworkLib
Question

Consider a firm with the following cost function C(q) = 30 + 5q. What is the firms average cost function? O A. Ac=(30/q)+59

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

Homework Answers

Answer #1

Option B is correct.

formula, AC = C(q)/q

or AC = TC/q

therefore, here AC = 30/q + 5.

0 0
Add a comment
Know the answer?
Add Answer to:
Consider a firm with the following cost function C(q) = 30 + 5q. What is the...
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

  • Assume that the cost function for a firm is equal to C(Q) = 1000 + 5Q...

    Assume that the cost function for a firm is equal to C(Q) = 1000 + 5Q + 10Q2 and the Marginal Cost function is MC(Q) = 5 + 20Q. What is the level of fixed cost when production is equal to 100? 200? What is the level of variable cost when production is equal to 100? 200? What is the level of Average Fixed Cost when production is equal to 100? 200? What is the level of Average Variable Cost...

  • Q: Suppose a firm's total cost function is TC = 16 + 5Q + 4Q2 ....

    Q: Suppose a firm's total cost function is TC = 16 + 5Q + 4Q2 . What is the output level that minimizes average total cost?

  • Suppose price-taking firms have cost functions given by C(q) = 90 + 5q + 0.025q^2 What...

    Suppose price-taking firms have cost functions given by C(q) = 90 + 5q + 0.025q^2 What are the equations of marginal costs and average costs? How much would the firm produce at prices of $9, $10, $11, and $12? How much profit would the firm earn at prices of $9, $10, $11, and $12? Graph the MC, AC. Indicate the profits at a price of $9 per unit. What price would be charged in the perfect competitive equilibrium?

  • Question 4 Consider the Sunshine Company, a perfectly competitive firm with the following cost function TC...

    Question 4 Consider the Sunshine Company, a perfectly competitive firm with the following cost function TC 12006Q + 202 where Q is the firm's output per day. a) Find the firm's marginal cost function. [2 marks] C b) If the price of Sunshine's product equals $66, how many units per day should the firm produce? [4 marks] c) Find the firm's average variable cost function. [3 marks] d) Is average variable cost at the quantity you calculated in part b)...

  • 2. Consider a firm producing pizza with production function q = KL, that faces input prices...

    2. Consider a firm producing pizza with production function q = KL, that faces input prices w= $10 and r = $100 for labor and capital, respectively. a. Derive the isoquant equation. Find the isoquant of an output q = 1. Draw it in a figure with l in the horizontal axis and k in the vertical axis. b. Does this firm's production exhibit increasing, decreasing or constant returns to scale? Briefly explain c. Find the labor demand, and the...

  • 5. Consider the following cost function: c(q; F) = F + 10q + q2 , where2...

    5. Consider the following cost function: c(q; F) = F + 10q + q2 , where2 F > 0 represents the fixed cost: F = c(0; F). (a) Compute the marginal cost function, MC(q) = c0(q; F). (b) Show that the marginal cost function MC(q) is increasing. (c) Recall the average cost function, AC(q; F) = c(q;F) . Find qˉ(F),q the value of q (given F) at which AC(q; F) = MC(q).

  • 6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal...

    6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal cost associated with this function. Determine the value of the firm's marginal cost when Q=50. Graph the MC function with MC on the vertical axis and Q on the horizontal.

  • Suppose that the cost function of a firm is C(Q) = 490 + 10Q^2 . (a)...

    Suppose that the cost function of a firm is C(Q) = 490 + 10Q^2 . (a) Provide the mathematical expressions for AFC, AVC, AC and MC. (b) Graph all the costs above as a function of Q. (c) What is true about the relation between the marginal cost and the average costs when the latter are at their minimum? And when the average cost are increasing (decreasing)? Explain.

  • ASAP 6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the...

    ASAP 6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal cost associated with this function. Determine the value of the firm's marginal cost when Q=50. Graph the MC function with MC on the vertical axis and Q on the horizontal.

  • Consider a firm with the cost function C (Q) Q2 + 20Q + 150. Imagine the...

    Consider a firm with the cost function C (Q) Q2 + 20Q + 150. Imagine the government imposes a tax of $5 per unit they sell on the firm. What is this firm's short run supply curve (ignoring any shut-down issues)? 0-220

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