3. Explain the relationship between firm's short- run production function and its short-run cost function. Focus on the marginal product of an input and the marginal cost of production. 1. Base on your knowledge of the definition of the various measures of the short-run cost, complete this table. Q TC TFC TVC AC AFC
I "think" the attachment is supposed to help!?!??! Please show work. You are a consultant for Woods Restaurants. At the deli counter, during the busy lunch hour (12-1 pm), the amount of sandwiches (Q) that can be made is determined by the number of workers (L). Suppose each worker makes $6 per hour and sandwiches s
Night Timers Co. manufactures glow-in-the dark products in 10 ft. rolls. At present the company's maximum production capacity is 140,000 rolls per year. The cost is described as: C= $50,000 + 0.25 Q. The company seeks a price that maximizes profit & believe they should be able to sell at least 125,000 rolls of product per year
Suppose that a simple society has an economy with only one resource, labor. Labor can be used to produce only two commodities- X, a necessity good (food) and Y, a luxury good ( music and entertainment). Suppose that the labor force consists of 100 workers. One laborer can produce either 5 units of necessity per month ( by huntin
The two attachments are all guidelines to solve nos. 2 and 4 of chapter 11. See the attached files.
The following are hypothetical points a student can earn in examinations on economics and biology if the student uses all available hours for study. Economics Biology 100 40 80 60 60 80 40 100 Using this data, you need to plot the student's production possibilities curve Now, answer the following questions
Which of the following statements about the short-run production function is true? - MP always equals AP at the maximum point of MP. - MP always equals zero when TP is at its maximum point. - TP starts to decline at the point of diminishing returns. - When MP diminishes, AP is at its minimum point - None of the
Which of the following indicates when Stage II ends and Stage III begins in the short run production function?
Which of the following indicates when Stage II ends and Stage III begins in the short run production function? when AP = 0 when MP = 0 when MP = AP when MP starts to diminish
Having a little trouble setting this problem up. Would appreciate a detailed set up and solution. A production function has 2 inputs - labor and capital. Both are perfect substitutes. Existing technology permits 1 machine to do the work of 3 workers. The firm wants to produce 100 units of output. Suppose the price of capita
A meat company located upstream from a bourbon distillery, dumps waste into the stream, so that the distillery must incur the costs of cleaning the water to the quality standard advertized on the bottle. PB is price of bourbon, PB=$7/unit PM is price of the meat, PM=$5/unit B is units of bourbon production M is units of m
Firm A has no costs of production and sells its production in two buyers. Buyer 1's demand function is p1 = 90 - 10y1 and Buyer 2's demand function is p2 = 60 - 5y2 Assuming that the firm can engage in ordinary price discrimination, find the profit maximizing prices. What is firm A's profit? Now suppose that the firm c
A producer is hiring 20 units of labor and 6 units of capital (bundle A) The price of labor is $10, the price of capital is $2, and at A, the marginal product of labor and capital are both equal to 20. Beginning at A, if the producer increases labor by one unit and decrease capital by i unit, then a. cost remains constant and
For a short run production function which output is determined by the number of workers utilized (capital stock held constant) which of the following is true? a. In general, when there are a few workers the marginal product of labor will be constant. b. When the marginal product of labor is negative total product is falling.
After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Believing the new workers were either lazy or ineffectively supervised( or possibly both
The following Cobb-Douglas production function, Q = 1.8L^0.74K^0.36 exhibits A) increasing returns B) constant returns C) decreasing returns D) both a and b
Brief history of the automotive industry, an automotive industry overview, and a SWOTT (Strengths, Weaknesses, Opportunities, Threats, and Trends) analysis of the automotive industry.
a) Discuss the relationship existing between production and cost. b) If a Total Cost function is given as: TC = 20,000 + 0.50Q + 0.025Q^2. Interpret the function by explaining what part constitute a fixed cost and what part constitutes variable cost. c) What is the MC function of the above TC function?
The difference between the short-run and the long-run production function is: a. three months or one business quarter. b. the time it takes for firms to change all production inputs. c. the time it takes for firms to change only their variable inputs. d. more information is required to answer this que
The following Cobb-Douglas production function, Q = 1.8L0.74K0.36 exhibits a. increasing returns. b. constant returns. c. decreasing returns. d. both a. and b
(a)Consider a firm with a total short-run cost function C=a+b.Q. New legislation means that it must pay an environmental tax which is a fixed sum, independent of whether it produces any output. How does this tax affect the firm's fixed cost (FC) marginal cost (MC)and average total cost (ATC)? (b) Now suppose that the tax is
A brick factory's main inputs are energy (8000 units a £10 each) and labour (4000 units at £10 each). A new environmental policy will tax energy and subsidise labour so that the firm's costs are unaffected. The Government plans a 1% tax on energy use. An adviser has suggested that a labour subsidy of 2% would leave the costs o
Please can you help with some hints, if you can't help with final solution. Thank you! A cell phone distributor can import cell phones at the world price of $110 per cell phone. The distributor can also have these phones produced within his or her own company at two production lines. Production Line 1 has a total cost funct
Why marginal analysis is so important in managerial economics? Give examples of how this type of analysis can help a managerial decision maker. What are some limitations to using marginal analysis?
I believe that fast food restaurants show short run production function because of a one fixed input, capital. However, I need to elaborate more and produce the production function equation Q=F (L,K,M...) Can you please help? Also on a fast food restaurant like McDonalds, fixed and variable cost are fixed is capital, build
Brazilian ethanol producers (who make ethanol from sugarcane) have lower production costs than U.S. producers. Indeed, even though it costs 16 cents per gallon to transport ethanol from Brazil to the United States, which also imposes and import tariff of nearly 60 cents per gallon on Brazilian ethanol, the United States still i
Please see attached file for full problem description.
What is the relationship between productivity and the cost of production, and how does the cost of production vary over the short- and long-run?
1. Production Planning. The Bogard Corporation produces three types of bookcases, which it sells to large office supply companies. The production of each bookcase requires two machine operations, trimming and shaping, followed by assembly, which includes inspection and packaging. All three type require 0.4 hour of assembly ti
If Y=real GDP, and L,K,and T represent the quantities of labor, capital and technology, what are the most appropriate representation of aggregate production function... Not sure if the formula begins with Y=F(K,T,L) orT+F(Y,T,L)
Explain why a monopolist must lower its quantity relative to a perfectly competitive market to maximize profits. Make sure to elaborate use examples.