Paul's firm produces the same good as Sal's firm. The total cost of producing qp units in Paul's firm is Cp( qp ) = 7.6 qp + 2.2. The total cost of producing qs units in Sal's firm is Cs( qs ) = 7.6 qs + 2.2. What is the efficiency loss if each person's firm produces half of a total of 595 units?
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Paul's firm produces the same good as Sal's firm.
The total cost of producing qp units in Paul's firm is Cp( qp ) = 7.6 qp + 2.2.
The total cost of producing qs units in Sal's firm is Cs( qs ) = 7.6 qs + 2.2.
What is the efficiency loss if each person's firm produces half of a total of 595 units?
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- You and a group of friends are planning to visit a theme park, which charges $60 for admission, $80 for a two day pass, and $90 for a three day pass. You're friends are interested in spending a lot of time there, but they're worried about paying a lot of money. You explain the concept of marginal cost, which helps them see that the additional day is a good value. Part 1 The average cost per day of a three-day pass is $________ per person The marginal cost of adding the third day is $______ per person Part 2 If there are 6 people in your group, the groups marginal cost of switching from the two-day pass to the three-day pass is $ _______Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly ElasticA firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a marginal cost of $50 per unit produced. Producing more than 100 units has a marginal cost of $70 per unit produced. The firm cannot produce more than 150 units. How much does it cost to produce at q=0? at q=50? at q=100? at q=125? at q=150? Graph the firm’s marginal cost function
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- Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q^2. a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why? *Please show all work*Suppose that the profit from the sale of Kisses and Kreams is given by the following, where x is the number of pounds of Kisses and y is the number of pounds of Kreams. P(x, y) = 10x + 6.6y - 0.001x² -0.025y² dollars You know from previous experience that, for such a profit function, profit will be maximized at the critical point of P(x,y). (a) Determine the amounts of Kisses and Kreams that will maximize profit. pounds of Kisses pounds of Kreams (b) What is the maximum profit? (Round your answer to two decimal places.) $A grape grower with a vineyard in the Edna Valley and in the Carneros appellation in Sonoma/Napa has a contract to produce 18 tons of pinot noir grapes for Gallo. The current allocation of the 18 tons results in a marginal cost of production in the Edna Valley vineyard of $800 (MCev = $800) and a marginal cost of production in the Carneros vineyard of $1200 (MCc = $1200). Explain whether the grower should move one ton of production from the Edna Valley to Carneros or vice versa. Make sure to provide a clear explanation of the outcome consistent with the idea of the equimarginal principle. Make sure to use the correct terms and units.