Question

The estimated short cost function of Japanese beer manufacturers C 05.00 MWhat positive Quantity does the average cost function machi n ? 100 per s is applied to the firm what positive quantity is the war tax Average cost before the taxis minimized a quantity of Average cost win 100 tis minimized a quantity of units. (Enter your sponse rounded to three decimal places) Enter your response rounded to the decimal )

Answer 1

[(2) = .00501-6 + good Assagen Cast, Aell) = cle) = 0.5 lid +_900 AC(Z) = 0.5 20.6 + 900 Minimize Acle) * 2 AC(q) =0 o Acll)_ 0.30-0.4 +/-900 e) 0.39-004 - 1.500 03. MIS = = - 0.3 goo4 1800 93 5) 93 9004 = 1800 003 o 4 7 9206 = 6000 7 q = 28.388 If a $400 per unit will change to tax is applied them total cost

c'(a) = 0.5 plitke +90 + 4002 Ac'ly) = (e) = D.521.t to get Minimize AC(q) & DAC' (2) =0 1800 = 0 _ _ 0.39-004 -1800 = - which is same as before tax condition. Therefore, the quantity at which average cost is minimized will remain same for both before tax and after fax which is 28.388 units. I