Consider a firm with the following cost function C(q)= 30+5g. Currently the firm is producing 100 units of output. Its marginal cost is given O A. $530 O B. $535 O C. $5 O D. $30 O E. None of the above
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- K A cereal factory has weekly fixed costs of $22,000. It costs $1.26 to produce each box of cereal. A box of cereal sells for $4.06. Find the rule of the cost function c(x) that gives the total weekly cost of producing x boxes of cereal. OA. c(x)=1.26x OB. c(x)=22,000+ 1.26x OC. c(x)=22,000 +4.06x OD. c(x)=22,000+ 2.8xproduction function: ƒ (k, 1) = 9 function. k Derive the firm's costA manufacturing firm has a total cost curve: TC = 0.2Q3 - 5Q2 + 50Q + 240, and a marginal cost curve of MC = 0.6Q2 - 10Q + 50. Calculate the minimum cost that the firm can possibly have. a.420 ≤ MC < 440 b.MC < 380 c.400 ≤ MC < 420 d.380 ≤ MC < 400 e.MC ≥ 440
- A firm's cost function is C(x) = 300lnx, determine and interpret the marginal cost of the firm when it produces 60 units. a. When the firm produces the 60th unit total cost will decrease by $5. b. When the firm produces the 60th unit total cost will be $5. c. When the firm produces the 60th unit total cost will increase by $5.When output is zero, total fixed cost is zero. O True O FalseSuppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for production and sale of the coffee makers are $1,000$1,000 plus $13$13 for each coffee maker produced.a. Write the function for monthly total costs C(x)=C(x)= b. What is the fixed cost? c. What is the marginal cost? d. Interpret the marginal cost. Each additional coffee maker made decreases the cost by this many dollars. If the number of coffee makers increases by this amount, the cost increases by $1. Each additional coffee maker made yields this many dollars in cost. If the number of units made is increased by this amount, the cost decreases by $1. e. What is C(300)C(300) ? f. Interpret C(300)C(300) When this many coffee makers are produced the cost is $300300. For every additional coffee maker produced the cost increases by this much. This is the cost (in dollars) of producing 300 coffee makers. For each $1 increase in cost this many more coffee makers can…
- The following is a table of the total cost (TC) of producing output Q for a particular firm. Based on this information, which of the following statements is correct? Q Y TC (X) 10 140 20 210 30 265 40 310 50 360 60 420 O a. The marginal cost is higher than the average cost at Q = 50. Ob. The marginal cost at Q80 is £9.50. Oc The average cost at Q-40 is £7. Od. The marginal cost curve intersects the average cost curve at Q = 60. 490 8 60 570 8 90 660 100 760The table below shows the long run total cost function for a firm. The firm's cost function exhibits: Quantity of Output 0 2 3 4 5 Odiseconomies of scale Total Cost ($) O constant returns to scale O economies of scale O decreasing marginal cost O increasing marginal cost 10 20 30 40 50 KVinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows:Output TFC TVC TC AFC AVC ATC MC 0. 10001. 1002. 1003. 4004. 4505. 16006. 32007 6400 A) Given the partial data available, finish the table and calculate all the costs. B)What is the minimum efficient scale of Vinnie’s company?C)What is the marginal cost of 6 houses?D)If Vinnie charges $825 per house, how many houses he should paint to maximize profit
- K Suppose that a firm's production function is q=5x in the short run, where there are fixed costs of $1,000, and x is the variable input whose cost is $625 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing ya level of output q is A. C(q)= 1,000. OB. OC. OD. OE C(q)= 1,000+ C(q)= 1,000+ C(q) = 1,000+ 625q² C(q)= 25 q² 25 625q² 25 0.5 q B Dollars per unit of output 2000- 1800- 1600- 1400- 1200- 1000- 800- 600 400- 200- a 12 14 10 Quantity nchack 18 (1) IncorrectSuppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of $900. If the firm produces and sells 151 units, its total revenue is $1,005, and its total costs are $950. Should the firm produce and sell the extra unit? Group of answer choices yes, since marginal profit is positive yes, since profits are positive no, since marginal profit is negative no, since marginal profit is positive You have recently learned that the company where you work is being sold for $1,000,000. The company's income statement indicates next year's profits of $30,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and the interest rate will remain constant at 7%, at what (constant) rate does the owner believe that profits will grow? (Hint: the price the owner was willing to pay is the present value of the firm's future cash flows) Group of answer choices 6% 5% 4% 4.5%A firm’s cost function is C(q) = 100q − q^2+1/5q^3+450(a) Derive the marginal cost, the average variable cost, and the average cost.(b) Show that the average variable cost equals the marginal cost at the output level atwhich the average variable cost reaches the minimum.
