Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Consider the owners of a small lawn-mowing service. They can use one of two methods to mow lawns. Method 1 is to purchase a tractor that costs $200 a year to own and then spend $1 (for labor and gas) for every acre of grass cut. Method 2 is to spend $40 on a used push mower that will last one year and then spend $5 (for labor) for every acre of grass cut.

a. prepare down the total cost functions for the two methods, letting q represent the number of acres of grass cut per year. (In other words, find an equation with total cost or C on the left-hand side and q on the right-hand side for both methods.)

b. Find the average total cost function and the marginal cost for each of the two methods. (Here, find an equation with ATC on the left-hand side and q on the right-hand side for each method. For MC, you do not need an equation. You will have a single dollar value for each method.)

c. Assume that the tractor and the push mower have no resale value at the end of the year. What is the smallest number of acres of grass cut per year for which the owners should buy the tractor? Show work.

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M968359

Have any Question?


Related Questions in Microeconomics

Question assume that us imports have an income elasticity

Question: Assume that US imports have an income elasticity of 1.3 and a price elasticity of -0.5, and US exports have an income elasticity of 1.2 and a price elasticity of -0.7. They also have a ‘‘repercussion elasticity ...

Question in 1955 the last year when social security

Question: In 1955, the last year when social security payments included only old-age payment (before disability), payments totaled $4.9 billion. For 2001, the figure was $433 billion (excluding Medicare, which was anothe ...

Question despite the economic progress that the us has

Question: Despite the economic progress that the U.S. has observed in the past century, the standard of living remains extremely low in many countries. Consider the following regarding poverty in developing countries: • ...

Question in no-fault insurance anyone involved in an

Question: In no-fault insurance, anyone involved in an accident is compensated for losses, regardless of who actually caused it. What do you expect will happen to the volume of auto accidents if no-fault insurance replac ...

Question my parking permit at the university gives me

Question: My parking permit at the university gives me rights to use a very convenient lot reserved exclusively for faculty. Even if I arrive at a peak hour like 10 a.m. I can almost surely find a space in it. Your stude ...

Can someone assist me with thisthe verses from proverbs for

Can someone assist me with this? The verses from Proverbs for this week discuss true and false measures and weights. In those days payment was often made by weight of silver or gold or some other valuable object and of c ...

Question in these efforts they build scholarship based on

Question: In these efforts, they build scholarship based on reason, balance, and supporting evidence, although much of this scholarship is based on theory. Discuss how political scientists attempt to quantify data, manip ...

Question shopping for prices is a common form of

Question: Shopping for prices is a common form of information gathering. Researchers have found that for a given good the prices paid by middle-aged, upper-income, and large households average as much as 10 percent less ...

Question if your instructor is an agent who is are the

Question: If your instructor is an agent, who is (are) the principal(s)? Do not say "the university," because there is no such identifiable individual. If you think it is the students, explain why. If not the students, w ...

Question -q1 turnover costs savings - assume that training

Question - Q1. Turnover Costs Savings - Assume that training results in a 10 percent reduction in your turnover rate. Also, assume that the cost of a turnover is 1.5 times the departing employee's salary. For a given ave ...

  • 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