I. - Professor Smith and Professor Jones are going to produce a new introductory textbook. Production Function : q = (SJ)1/2
Q = number of pages in finished book
S = number of working hours spent by Spent
J = number of working hours spent by Jones

Smith values labor at $20 per working hour, she spent 900 hours providing the first draft. Jones, labor valued at $80 per working hour will revise Smith's draft.

(a) How many hours will Jones have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages?

(b) What is the marginal cost of the 150th page of the finished book? Of the 300th Page? Of the 450th page?

ii. - Suppose a firm's constant-return-to-scale production function requires it to use capital and labor in a fixed ratio of two workers per machine to produce 10 units and that the rental rates for capital and labor are given by v = 1 and w = 3.

a. Calculate the firm's long-run total and average costs curves.

b. Suppose K is fixed at 10 in the short run. Calculate the firm's short-run total and average cost curves. What is the marginal cost of the 10th, 25th, 50th, and 100th unit?

i.(a) How many hours will Jones have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages?
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<br>Since S=900, from q = (900J)^0.5 = 30 J^0.5
<br>We can write J = (q/30)^2
<br>
<br>Then when q=150, J =(150/30)^2 = 25
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<br>Then when q=300, J =(300/30)^2 = 100
<br>
<br>Then when q=450, J =(450/30)^2 = 225
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<br>(b) What is the ...

Solution Summary

Calculate the firm's short-run total and average cost curves.

Which of the following relationships is correct?
a. When marginal product starts to decrease, marginalcost starts to decrease.
b. When marginalcost starts to increase, average cost starts to increase.
c. When marginalcost starts to increase, average variable cost starts to increase.
d. When margina

52. The Jones Company has the following cost schedule:
Output Total Cost
(Units) ($)
0 3000
50 3750
100 4275
150 4675
200 5000
250 5300
300 5700
350 6250
400 7050
450 8225
Prepare (a) average total cost and (b) marginalcost schedules for the firm.

The cost function for a business is shown in the table below (where Q is the level of output):
Q (units) Cost
0 8
1 24
2 38
3 44
4 51
5 52
6 59
7 65
8 79
9 95
10 125
Calculate the (a) marginalcost and (b) the average total cost schedules.

1. Given the following total cost function of C (q) = 400Q(squared) - 20Q + 7
Calculate Average cost, Marginalcost, Average Variable Cost and the output level at which Average Variable Cost is at a minimum.

MarginalCost & Marginal Benefit
1. How can I cite three examples of personal decisions, in which I weighed:
a. marginalcost
b. marginal benefit.
(Make sure these are socially acceptable).

1-The only choice variable is x. The total benefit function is B(x) = 100x - 2x2, and the total cost function is C(x) = 1/3 x3 - 6x2 + 52x + 80.
a-What are the marginal benefit and marginalcost functions?
b-Set up the net benefit function and then determine the level of x that maximizes net benefit. (Use the positive value

Construct line charts for the Average Cost (AC), Average Variable Cost (AVC), MarginalCost (MC), Marginal Revenue (MR) and Average Revenue (AR) on a Cartesian coordinate system.

If marginalcost exceeds marginal revenue, then:
a. the firm ends up with a net loss
b. the firm's average osts exceed average benefits
c. the firm should decrease its production level
d. none of the statements associated with this question are correct

I.
need to show how this was solved
Suppose that the firm's cost function is given in the following schedule (where Q is the level of output):
Output Total
Q (units) Cost
0 7
1 25
2