Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Economics Expert

problem: If the marginal cost of producing a good is increasing as a firm produces more of the good and then which of the following must be true?

a) AFC is rising 
b) AVC is rising 
c) MC > AVC  
d) MPL is falling

problem: The equality of marginal cost and average variable cost occurs when:

a) Marginal cost is minimal.     
b) Average product of the variable input is minimal. 
c) Average variable cost is minimal.  
d) None of the previous statements is correct.

problem: Suppose the short-run production function is Q = 10L and the wage rate equals $10.  Find the average variable cost.

problem: A firm’s total cost function is given by TC = 2Q2 + 10. What are the firm’s fixed costs, variable cost, average fixed cost, average variable cost, and marginal cost functions?  Sketch the MC, AFC, AVC curves, as well as the average total cost curve, all in one diagram. If necessary, continue your solution on the back side.

problem: A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K2 L; Where K is the amount of capital and L is the amount of labor employed by the firm.  The unit prices of capital and labor are, respectively, r = $6 and w =$5.  Let the amount of capital K be fixed at K=20. Based on this information, determine and sketch the firm’s short run cost curves: AFC, AVC, AC, and MC. Please use the back of this page if you need more space for your solution.

problem: A firm uses capital and labor to produce a single output well. The production function is given by F(K, L) = K2 L; Where K is the amount of capital and L is the amount of labor employed by the firm. The unit prices of capital and labor are given by, respectively, r = $6 and w =$5. Based on this information, please draw the optimal expansion path of the firm. describe.

problem: Let a firm’s production function be given by K0.3 L0.7.

(i) Sketch (without specific numbers) the shape of the long run average and long-run marginal cost curves of the firm;

(ii) in the same graph, please also sketch the firm’s short run average and marginal cost curves (when the amount of capital is fixed). Comment on the relationship between the long- and the short-run curves.

problem: A firm operates two plants with the marginal cost curves given by MC1 = 50 + 2Q1, MC2 = 90 + Q2. If the firm’s total output must be 80 units, how much will it produce at each plant?  Please use the back of this page for your solution.

problem: Let a quarry’s cost function of producing Q tons of stone per hour be given by TC =  Q3- 10Q2+ 40Q + 25, so that marginal cost function is MC= 3Q2 - 20Q + 40.

(i) Find the formula for the quarry’s short-run supply curve and draw its detailed graph. describe your solution.

(ii) If market price of a ton of stone is $28, how much will the quarry’s manager be willing to produce per hour in the short run? find out per hour profit. 

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M9113

Have any Question? 


Related Questions in Managerial Economics

Discussion explore applications of pert and cpm in the

Discussion: Explore Applications of PERT and CPM in the Public or Non-Profit Organizations PERT is typically used to manage very large projects. In terms of scale, think weapons systems, the development of interstate tra ...

Topic - cost benefit analysis cba discussion benefits and

Topic - Cost Benefit Analysis (CBA) Discussion: Benefits and Shortcomings of Cost Benefit Analysis As mentioned in the Weekly Introduction, cost benefit analysis is one of the most widely used of all public-sector manage ...

Geographic information systems gisassignment short paper

Geographic Information Systems (GIS) Assignment: Short Paper: GIS In the early years of Geographic Information Systems (GIS) technology, mapping was largely limited to public works, and then in the 1990s and early 2000s, ...

Assignment - portfolio project for the final project you

Assignment - Portfolio Project For the final project, you will create a case study based on a company of your choice. The case study should include at least 5 of the concepts that we have discussed. The case study should ...

I have long thought subway made a monster mistake in their

I have long thought Subway made a MONSTER mistake in their "$5 footlong" campaign, that showed the whole country that they could sell footlong subs for just $5. I think this decreased the value of their brand, and made t ...

Simulation and agent-based modeling schelling t c 1971

Simulation and Agent-Based Modeling Schelling, T. C. (1971). Dynamic models of segregation. Journal of Mathematical Sociology, 1(2), 143-186. Seminal Retrieved from the Walden Library databases. Discussion: Agent-Based M ...

Question read three 3 academically reviewed articles on

Question: Read three (3) academically reviewed articles on managerial economics and complete the following activities: (500 words) 1. Summarize all three (3) articles. Please use your own words. No copy-and-paste 2. Disc ...

Queuing theory in the public sectordiscussion queuing

Queuing Theory in the Public Sector Discussion: Queuing Theory and Wait Times For this Discussion, you dive deeper into the topic of queuing. To prepare: Review the Learning Resources for the week as they relate to the t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As