Homework Answers
Given that the average cost function= 2Q + 5 + 30/Q
Now, to find the marginal cost of the firm when the quantity is 50.
AC = TC / Q
TC / Q = 2Q + 5 + 30/Q
TC = 2Q^2 + 5Q + 30
Therefore TC = 2Q^2 + 5Q + 30
MC = d/dQ( TC) [ derivative of TC with respect to Q]
MC = 4Q + 5
MC when quantity is 50 units: 4(50) + 5 = 200 + 5 = 205
Thus the marginal cost of the firm is $205 at 50 units of output.
Therefore the marginal cost function is 4Q + 5
MC Graph:
| Quantity | 0 | 1 | 2 |
| Marginal Cost | 5 | 9 | 13 |
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6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal...
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.
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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.
2. Find an expression for the MC function given the following average cost functions (a) AC 20 5+30/Q (b) AC 302-4Q+6+100/Q In each case 1) state the value of fixed cost and variable cost, and 2) calculate the value of marginal cost when Q 50
2. (54 points) Short-run costs. Suppose w 1, r 10 and K 20. C )q3 +200 a) (5 points) We have TC = WG) q3 + rK = On one graph (with q on the horizontal axis), graph the Total Cost, Variable Cost, and Fixed Cost functions. Pay attention to the shape of the curves, where they intercept the axes and each other (if they do), and the position of the curves relative to each other b) (9 points) Using...
5. Suppose that a competitive firm's marginal cost of pro- ducing output q is given by MC(q) = 3 + 2q. Assume that the market price of the firm's product is $9. a. What level of output will the firm produce? b. What is the firm's producer surplus? c. Suppose that the average variable cost of the firm is given by AVC(q) = 3 + q. Suppose that the firm's fixed costs are known to be $3. Will the firm...
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need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
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