Al's production function for deer is f(x1,x2) = (2x1 + x2)^1/2, where x1 is the amount of plastic and x2 is the amount of wood used. If the cost of plastic is $4 per unit and the cost of wood is $3 per unit, then the cost of producing 5 deer is a) $55 b) $10 c) $50 d) $75
Q: What are the factors that will affect the total revenue?justify your answer
A: Total revenue is the total amount of money a company brings in from selling its goods and services.…
Q: Explanation of Solution The computation of the proportion of portfolio must be allocated towards the…
A: Perpetuity:- A perpetuity is a type of investment which yields forever. In the financial world,…
Q: What is one explanation for why this labor supply curve is upward sloping? O Firms are willing to…
A: The measure that depicts various quantities of labor being supplied at different price levels is…
Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: circular flow of income is the economic model which represent the flow of income between household…
Q: Q6. Suppose you work as a tutor in your school, making $16 per hour. Yesterday, you decided to…
A: Opportunity cost is frequently referred to as the next best alternative. The loss of gain that…
Q: Answer the next four questions after completing the cost table below: Quantity TC MC AFC AVC ATC 0 1…
A: The measure that depicts expenses incurred by business for carrying out day to day expenses is known…
Q: , while Services sells 70% of its output to Goods and retains . Find equilibrium prices for the…
A: A goods is a tangible thing that buyers want or own. A service is definitely not a substantial or…
Q: A company operates in a competitive market, selling each unit of output for a price of $20 and…
A: Price per output = $20 Market wage per labour per day = $330 Value of marginal product of labour…
Q: Population growth surges rapidly
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: 1. Wages of bus drivers increase. At the same time, incomes of consumers generally increase. How…
A: According to the question, it is given that : Wages of bus drivers rises. At the same time, incomes…
Q: the central bank requies private banks to hold $8.00 of reserves for every $100 in deposits then the…
A: Required reserves ratio is the reserves banks must hold.
Q: 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L¹/2K1/2 L…
A: Given: The production function is: FL, K = 2L1/2K1/2 Hourly wage = $30 Capital rent = $25/hour The…
Q: Suppose Italy can make either 1000 statues or 700 bottles of wine. Suppose the US can make either…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: Based on the quantity theory of money, which of the following statements about the potential effects…
A: The total amount of money and other liquid assets in an economy on the measurement date is known as…
Q: Suppose the desired reserve ratio is 10 percent and a bank receives a new deposit for $100,000. By…
A: The amount of reservable liabilities that commercial banks must keep onto rather than lend out or…
Q: Suppose that De Beers and the local water utility are both monopolists, in the markets for diamond…
A: The structure of market where there is a single seller in the market who is considered to be a price…
Q: A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. What…
A: The measure that depicts intersection of demand curve and supply curve in the economy is known as…
Q: The Council had previously debated the issue of the basic income grant without reaching consensus.…
A: According to the specifics of the situation, "income" might be understood in a number of various…
Q: “A case of a start-up is going to be provided.” What are pains, gains and customer jobs in this…
A: Value of Customers Customer value is the measure of a product or service's value to a customer in…
Q: 11. Q = 6L - 0.1L2 + 4 K - 0.2 K2 The wage rate is $30, the cost of capital is $40, and output sells…
A: Returns to scale refers to the change in output when inputs change by a fixed proportion
Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…
A: The interest rate that accounts for the compounding periods over the course of a repayment plan is…
Q: 5. Production Function Question: Why don't we care about production-maximization in the context of…
A: Below are the solutions to questions 5, 6, and 7.
Q: Question 1. Firm 1 and Firm 2 are the only two firms in a market where price is determined by the…
A: "Cournot model is a model of oligopoly. In this model, firms compete with each other with respect to…
Q: Pearl Ltd. intends to manufacture and market mechanical weighing scales. Their research department…
A: Given information; x = 6200 - 50p C = 7400 + 70x Where x is the number of scales that can be sold at…
Q: Among the following production functions, which one is consistent with the US stylized fact for…
A: Production function refers to the functional relationship between input and output. Here labour and…
Q: ich of the following statements are FALSE? (a) When the government prints money to buy…
A: Government spending is effective during the recessionary pressures. The recessionary pressures lead…
Q: A city is spending $19.3 million on a new sewage system. The expected life of the system is 40…
A: A cost or expenditure is capitalized when it is recorded on the balance sheet with the intention of…
Q: 6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of…
A: Correct answer is option D
Q: If consumption equals $6,200 billion, investment equals $1,200 billion, transfer payments equal…
A: GDP is the value of final goods and services produced in the country within a given period of time.
Q: economist view a perfectly competitive market structure as the ideal structure for economic…
A: According to economic theory, perfect competition exists when all businesses sell the same goods,…
Q: Firm would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers if the wage rate…
A: Given the number of workers in firm A = 20000 Wage rate in firm A = $12 At a wage rate $15, hire…
Q: of each year. If the interest rate is 5 percent, determine the present value of the stream of:…
A: Accounting profit does not account for implicit cost while the economic profit account for the…
Q: If the required reserve ratio were to decline, what effect would this have on the money supply?…
A: Answer: Required reserve ratio: it refers to the fraction of total deposit that is kept aside by…
Q: The following graph shows the short-run aggregate supply (SRAS) curve and the long-run aggregate…
A: Here the supply curve is the curve depicting how much production of manufacturing goods is being…
Q: Enabled: Exam 4-Chapters 8,9 & 10 Help The current Required Reserve Ratio is 10% and Bank A sold a…
A: Here, it is given that the required reserve ratio is 10% and there is an increase in excess Reserve…
Q: Discuss whether or not all govrnments will have the same economic aims
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: The ending inventory of work in process is: a. $219,250 b. $73,250 $65.000
A: The monetary value of goods remaining at the end of the year with a company is called ending…
Q: An engineer who is about to retire has accumulated $50,000 in a savings account that pays 6% per…
A: Lets note down the information given to us as follows:- P = 50,000 i = 6% n = 10
Q: TABLE P7.11 n 0 1 2 3 4 5 6 7 A - $2,500 100 100 100 2,100 | | | Net Cash Flow B -$2,000 800 600 500…
A: A simple or a conventional project has only cash inflows, that is, positive cashflows after initial…
Q: what happens to the total revenue if the quantity of demand decrease?
A: Total revenue is the product of price and total quantity.
Q: PART D) Risks and Benefits of CBDCS • Some perspective of political economy would be helpful. • What…
A: A CBDC is another type of outside cash intended to supplant actual currency at last. Since it is an…
Q: With i = 10%, n = 4, find an equivalent uniform payment A' for 24,000 1 18000 2 12000 3 4000 4
A: The given series is uniform gradient series Here A1=24000 G = -6000 n=4 i=10% We have to calculate…
Q: Use the table to answer the questions: Country A $100 10% Country B $2000 Initial Demand Deposits…
A: Money supply is the stock of money in economy. it includes cash as well as non cash assets.…
Q: Why would a profitable for-profit organization choose to exit a line of business?
A: In the mentioned question we have been asked why the profitable organizations choose to exit the…
Q: Why is there so much informal finance in the Asian countries but not in the industrial countries?
A: Informal finance: It refers to a system under which money lenders or private owners offer money or…
Q: Price $10 $8 $6 $4 $2 nded and supply for a given market Quantity Supplied 60 45 30 15 Quantity…
A: The given data shows the inverse relationship between the price and the quantity demanded. As it can…
Q: Distinguish between GDP deflator and Consumer Price Index
A: GDP deflator and Consumer Price Index (CPI) are used to determine price inflation and reflect the…
Q: After talking your managerial economics class, you realize that you can probably raise your profits…
A: In the mentioned question we have been asked about the different demand functions to be calculated…
Q: In 2019, X Company sold 5,250 units of its only product. Total revenue was $1,345,575, total…
A: Total Revenue is the total amount earned by the seller after selling the goods and services or we…
Q: If the consumer's income increases: O a. the budget constraint shifts out and its slope does not…
A: Given: There is an increase in the income of the consumer. NOTE: As per Bartleby guidelines,…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- (a) The cost of producing 5-gallon water bottles is given by C(q) = 0.005q² + 2q + 1000. If 2000 5-gallon water bottles are produced, find the %3D (i) total cost (ii) average cost (iii) marginal cost (iv) marginal average cost SBx2 -3 (Bx+2 (b) Suppose that f(x) if X 2 Find the value of B so that f(x) is continuous everywhere along the real line. (c) The demand for watches is given by p = 7000 - 2q dollars, and the supply of watches is given by p 0.01q? + 2q + 1000 dollars, %3D where q is the number of watches demanded and supplied when the price per watch is p dollars. Based on the information provided, calculate the equilibrium quantity and the equilibrium price for watches.Assume that it costs a company approximately C(x) = 400,000 + 140x + 0.003x? dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. 400,000 – 0.000009 Use it to estimate how fast the cost is increasing when x = 10,000. 2$ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. -Select--- at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- than the average cost from (b). This means that the average cost isThe total cost (in hundreds of dollars) of producing x calculators per day is given by the equation. 20- 15- 10- C(x) = 6 + /2x + 32 Osx< 50 Perform the following calculations and interpret the results. 10 20 30 40 50 Production C'(x) =U %D Cost (hundred dollars)
- A cost function is given. C(q) = 3600 + 5q-0.02q² + 0.00039³ (a) Find the average cost and marginal cost functions. +5 -0.02q +0.0003q average cost 3600 9 marginal cost 5 -0.04q+0.0009q (b) Use graphs of the functions in part (a) to estimate the production level that minimizes the average cost. (Round your answer to the nearest integer.) 194 ✓ units (c) Use calculus to find the minimum average cost. (Round your answer to two decimal places.) $ 32.41 X (d) Find the minimum value of the marginal cost. (Round your answer to two decimal places.) $ 4.56Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its marginal cost for a product is МС- 4x+ 25, that its marginal revenue is MR%3D 75 - 6х, and that the cost of production of 60 units is $8,880. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level.The profit of a company, in dollars, is the difference between the company's revenue and cost. The cost, C(x), and revenue, R(x), are functions for a particular company. The x represents the number of items produced and sold to distributors. C(x) = 2500 + 60x R(x) = 800x - x? a) Determine the maximum profit of the company. The maximum profit of the company is b) Determine the number of items that must be produced and sold to obtain the maximum profit. The number of items that must be produced and sold to obtain the maximum profit is
- The profit (in dollars) from the sale of x lawn mowers is P(x)= 20x - 0.02x^2 - 650 (A) Find the average profit per mower if 60 mowers are produced (B) Find the marginal average profit at production level of 60 mowers, and interpret results (C)Use the results from parts A and B to estimate the average profit per mower if 61 mowers are produced (1. Exercise 9.1 A study of 86 savings and loan associations in six northwestern states yielded the following cost function. 2.38 0.006153Q 0.000005359Q² 19.2X1 C + + (2.62) (2.84) (3.16) (3.50) where C = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q = output; measured by total assets ($ million) X1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Which of the variable(s) is (are) statistically significant in explaining variations in the average operating expense ratio? (Hint: t0.025,7€ 1.99 .) Check all that apply. X1 Q2 What type of average cost-output relationship is suggested by these statistical results? Quadratic Linear Cubic Based on these results, what can we conclude about the existence of economies or diseconomies of scale in savings and loan associations in…A heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000 overhead cost. The next unit, i.e. the second unit took 3300 hours. Overhead cost for this unit was $200,000. Suppose the labor was $20 per hour. Being the production manager, you need to decide what would be the total production costs for additional 10 units after the completion of the second unit. Round the final amount to nearest integer. $1,597,832 C$1,003,183 (DNone of the above
- The total profit P(x) (in thousands of dollars) from the sale of x hundred thousand pillows is approximated by P(x) = -x° + 12x + 144x – 400, x25. Find the number of hundred thousands of pillows that must be sold to maximize profit. Find the maximum profit. The maximum profit is $ The maximum profit will occur when pillows are sold.A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5000 p = 38 + (for D>1) D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units and total amount that should be produced and sold each month to maximize profit?The cost, in millions of dollars, of building a three-story high school in NewYork State was estimated to be: 2C x x x x 1.7 0.14 0.0001 20 400where x is the number of thousands of square feet. Suppose that you arecontemplating building a for-profit three-story high school and estimate thatyour total revenue will be $0.2 million dollars per thousand square feet.(a) What is minimum area for a three-story high school in New YorkState, that this model covers? (b) What is the variable cost of building a three-story high school in NewYork State? (c) What is the fixed cost of building a three-story high school in NewYork State? (d) Determine the profit function,P x( ), for building a three-story highschool in New York State? . (e) Determine,P(250) , for building a three-story high school in New YorkState, and interpret the result. (f) How many thousands of square feet should a three-story high schoolbuilding in New York State be in order to break even?