. The Warren & Smith Company manufactures commercial zippers of two kinds, kind X and kind Y. Its production department estimates that the average cost function of the firm is AC=X^2+2Y^2-2XY-2X-6Y+20
a) The manager of the firm would like to know the level of output of zipper X and zipper Y at which the average cost of the firm is minimized, and the level of this minimum average cost.
b)The firm expects an order that will require it to produce a total output of 6 units of both kinds of zippers (each unit may be a large number of zippers), and so the manager would also like to know how many of each type of zipper the firm must produce to minimize its average cost, and what its minimum average cost would be if it receives the order. The manager gives this assignment to two researchers who use different methods to obtain their answers.
c)While the firm expects the order to be of 6 units, it may be as large as 7 units or as small as 5 units. Determine the minimum average cost the firm with these different order sizes.
. The Warren & Smith Company manufactures commercial zippers of two kinds, kind X and kind...
2. A firm produces two different kinds, A and B, of a commodity. The daily cost of producing x units of A and y units of Bis C(x,y)=2x² - 4xy + 4y2 - 40x - 20y + 514 Suppose that the firm sells all its output at a price per unit of $24 for A and $12 for B. (a) Find the daily production levels x and y that maximize profit. (b) The firm is required to produce exactly 54...
2 and 4b please
e Iheorem 13.2.1 to prove that it is a A firm produces two different kinds, A and B, of a commodity. The daily cost of producing Q its of A and Q2 units of B is C(Q1,02)-0.10 +0102 +Q. Suppose that the firm sells all its output at a price per unit of P1 120 for A and P290 for B. (a) Find the daily production levels that maximize profits. (b) If P2 remains unchanged at...
**Only [Harder] Question** Problem 2. Consider a firm that has a cost function of c(y) = 5y 2 + 50, 000. In other words, this is a firm with a fixed cost of $50,000 (which might be something like the cost of rent on the firm’s building, which they have to pay whether they produce any output or not) and a variable cost of $5Y 2 , (which we’ll think of as the cost of the labor and machinery necessary...
Exercise 8 Question Help Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 50q. Assume that the demand curve for the industry is given by P = 190-Q and that each firm expects the other to behave as a Cournot competitor. Calculate the Cournot-Nash equilibrium for each firm, assuming that each chooses the output level that maximizes its profits when taking its rival's output as...
Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
145,376
Selling and administrative
Variable
$86,966
Fixed
79,827
At the end of the year, a company offered to buy 4,170 units of the
product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected...
Last year, X Company sold 67,200 units of its only product for
$17.00 each. Total costs were as follows:
At the end of the year, a company offered to buy 4,780 units of
the product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
5. If X Company had accepted the special order, firm profits would
have...
Last year, X Company sold 66,100 units of its only product for $18.00 each. Total costs were as follows: Cost of goods sold Variable $442,209 Fixed 120,302 Selling and administrative Variable $78,659 Fixed 66,100 At the end of the year, a company offered to buy 4,100 units of the product but only for $12.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...
Last year, X Company sold 69,200 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable $424,196 Fixed 131,480 Selling and administrative Variable $76,120 Fixed 96,188 At the end of the year, a company offered to buy 4,090 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...
Last year, X Company sold 62,500 units of its only product for $18.00 each. Total costs were as follows: Cost of goods sold Variable $443,125 Fixed 130,000 Selling and administrative Variable $90,000 Fixed 65,625 At the end of the year, a company offered to buy 4,680 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...
Last year, X Company sold 68,000 units of its only product for $18.00 each. Total costs were as follows: Cost of goods sold Variable $407,320 Fixed 127,160 Selling and administrative Variable $96,560 Fixed 101,320 At the end of the year, a company offered to buy 4,710 units of the product but only for $12.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...