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8. (8 marks) Suppose the total cost function of a firm is: C = 3q’ –...
Suppose the total cost function of a firm is: C = 3q3 – 12q2 + 20q...
Suppose the total cost function of a firm is: C = 3q3 – 12q2 + 20q a. Find the marginal cost function. Show your steps. (2 marks) b. Find the average total cost function. Show your steps. (2 marks) c. Find the output level that correspond to the efficient scale of the firm. Show your steps. (2 marks) d. Show your results in (c) in a diagram. (2 marks)
(20 marks) Suppose the market for disposable gloves is competitive and it is originally operating at...
(20 marks) Suppose the market for disposable gloves is competitive and it is originally operating at the long run equilibrium. An important raw material of producing disposable gloves is natural rubber. Suppose there is a drastic increase in the price of natural rubber. With the aid of side-by-side diagrams, explain the impacts of the above change on the equilibrium price and equilibrium quantity in the market for disposable gloves, as well as the profit maximizing output level of a typical...
(a) A firm has a total cost schedule of TC = 10 – 3q + 12q2. Draw a sketch graph of the total cost function showing all important points. (b) Assuming that the quantity sold is greater than 2 u...
(a) A firm has a total cost schedule of TC = 10 – 3q + 12q2. Draw a sketch graph of the total cost function showing all important points. (b) Assuming that the quantity sold is greater than 2 units (q > 2), at what output level will TC = £200?
1. Suppose there is a decrease in the price of gasoline. With the aid of a...
1. Suppose there is a decrease in the price of gasoline. With the aid of a demandand-supply diagram, explain how this will affect the equilibrium price and quantity in the market of gasoline cars. (6 marks) 2. Suppose the market for Japanese grapes is represented by: Supply: Q = 400 + P2 Demand: Q = 1000 – 5P2 i) Find the market equilibrium price and quantity. ii) Calculate the price elasticity of demand when the market is at the equilibrium....
Microeconomics . Cost function. Suppose a firm has a cost function C = 10 + 3q....
Microeconomics
. Cost function. Suppose a firm has a cost function C = 10 + 3q. What are this firm's fixed costs, variable costs, and marginal costs when q = 5?
Suppose the market of ice-cream is competitive. A typical firm producing ice- cream has the following...
Suppose the market of ice-cream is competitive. A typical firm producing ice- cream has the following total cost function: C = 60 + 3q + 6q2 where C is total cost and q is the output level. Assume the market price of ice-cream is $39. i) Find the marginal cost function of a typical ice-cream firm. Show your steps. ii) Find the profit maximizing output level of a typical ice-cream firm. Show your steps. iii) Find the amount of loss...
Suppose a firm faces a total cost function of: T C(Q) = 55 − 2Q +...
Suppose a firm faces a total cost function of: T C(Q) = 55 − 2Q + 10Q 2 (a) How would you express the average fixed cost for any level of output? What is the average fixed cost for 5 units of output? (b) How would you express the variable costs? What are variable costs when output is 6? (c) What is the marginal cost for the 12th unit of output? (d) At what level of output do marginal costs...
Suppose a pharmaceutical firm just invents a new drug to treat mad cow disease and this...
Suppose a pharmaceutical firm just invents a new drug to treat mad cow disease and this is the only effective drug available in the market. The demand and total cost functions of the firm are: Demand: P = 36 – Q Total cost: C = 24 + 2Q2 where P is the price of the drug, Q is the quantity of the drug and C is the total cost of the firm. a. Find the marginal cost and marginal revenue...
NEED ALL ANSWERS PLEASE Problem 3 [24 marks] A competitive firm uses two inputs, capital (k) and labour (), to produce...
NEED ALL ANSWERS PLEASE
Problem 3 [24 marks] A competitive firm uses two inputs, capital (k) and labour (), to produce one output, (y). The price of capital, W, is S1 per unit and the price of labor, wi, is SI per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is f(k,l) 3k025/025. The maximum amount of output produced for a givern amount of inputs is y(k, l)...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
(20 marks) Suppose the market for disposable gloves is competitive and it is originally operating at the long run equilibrium. An important raw material of producing disposable gloves is natural rubber. Suppose there is a drastic increase in the price of natural rubber. With the aid of side-by-side diagrams, explain the impacts of the above change on the equilibrium price and equilibrium quantity in the market for disposable gloves, as well as the profit maximizing output level of a typical...
Microeconomics
. Cost function. Suppose a firm has a cost function C = 10 + 3q. What are this firm's fixed costs, variable costs, and marginal costs when q = 5?
NEED ALL ANSWERS PLEASE
Problem 3 [24 marks] A competitive firm uses two inputs, capital (k) and labour (), to produce one output, (y). The price of capital, W, is S1 per unit and the price of labor, wi, is SI per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is f(k,l) 3k025/025. The maximum amount of output produced for a givern amount of inputs is y(k, l)...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
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