You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less L to cost minimize. Dj is profit maximizing but not cost minimizing.
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- You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 4, and MPK = 40 the firm: A.) is cost minimizing. B.) should use less Land more Kto cost minimize.C.) should use more Kand less L to cost minimize. D.) is profit maximizing but not cost minimizing.is generally determined by the consumer rather than by the producer. In other words, if a customer perceives that he receives more in benefits than what he has to pay for those benefits (or, he gets more in benefits than what he perceives it costs him to acquire those benefits), then he is probably going to be fairly happy with that product in relation to itsS cost.C(x) = 0.01x-0.3x + 10x gives the cost, in thousands of dollars, to produce x thousand items. (a) Find a formula for the marginal cost. (b) Find C'(0). Give units. (c) Graph the marginal cost function. Use your graph to find the minimum marginal cost, the production level for which the marginal cost is the smallest. (d) For what value of x does the marginal cost return to C'(0)? (a) Find a formula for the marginal cost. c'(x) =D (b) Find C'(0). Give units. c'(0) = (c) Use the derivative of the marginal cost function to find the minimum marginal cost, the production level for which the marginal cost is the smallest. The minimum marginal cost of additional dollars per item produced occurs when thousand items are produced. d) Recall your answer to part b. For what value of x does the marginal cost return to C'(0)? Marginal cost returns to this value of C (x) when x = items are produced.
- . Profit The revenue from sales of x units of a productis given by R(x) = 200x - 0.01x2, and the cost ofproducing and selling the product can be describedby C(x) = 38x + 0.01x2 + 16,000.a. Producing and selling how many units will givemaximum profit?b. What is the maximum possible profit from producing and selling the product?A firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?Saved Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of output? Average Costs 50 40 30 ATC ATC ATC, 20 10 130 160 250 50 30 60 90 120 150 180 210 240 270 300 Output a. 50 units of output: (Click to select) b. 130 units of output: (Click to select) c. 160 units of output: (Click to select) d. 250 units of output: (Click to select) ATC
- (a) Let production be Q(L) = 100 L² - L³_and costs be C(Q) = 250L +600. Show how average costs change as Qrises. Explain why it behaves in the way it does. You can use a spreadsheet or math to illustrate.< (b) Suppose P = $15. What is the profit maximizing level of L and Q? Show your work. (c) What is the firms shut-down price given costs = 250L + 600? Show and explain.<1. The cost in dollars to produce x yards of a certain fabric is: C (x) = 84 + 0.16x - 0.0006x2 + 0.000003x3 a)Find the marginal cost function b)Find C '(x) and explain its meaning. What do you forecast? c)Compare C '(100) with the cost of making the 101-th yard.You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A.J is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is profit maximizing but not cost minimizing.
- Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is linear. The belts are sold for$ 27 each. a)find the marginal cost b)find a linear equation in slope-intercept, form that represent the total Cost of making will c) What is the fixed cost? d) find a profit in slope- intercept that will represent the profit if x belt are made and sold? e) Find the break even point?Is this graph a valid set of cost curves? True/FalseVI. | Suppose the cost of producing milkshakes is C = Q³/3-30² +150 +50. What is the equation for marginal cost? At what point is marginal cost minimized?