Consider the operator of a small newsprint production plant. They fixed costs of $1600 per day...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the operator of a small newsprint production plant. They fixed costs of $1600 per day for property taxes, interest on debt, etc., and has additional costs that vary with the amount Q of newsprint he produces. Their total costs per day are given by: C = 1600 + 40Q +2/3Q3/2 They sell their output to local newspaper publishers and the price they obtain depends on how much they try to sell. Let the demand curve they face be P = 100 + 512Q-1/2 a) What are their average and marginal costs of production expressed as functions of Q? b) What are their total and marginal revenues expressed as functions of Q? C) How much output per day should they produce if they expands production just to the point where marginal revenue equals marginal cost? What profit if any will they make in S/day? Consider the operator of a small newsprint production plant. They fixed costs of $1600 per day for property taxes, interest on debt, etc., and has additional costs that vary with the amount Q of newsprint he produces. Their total costs per day are given by: C = 1600 + 40Q +2/3Q3/2 They sell their output to local newspaper publishers and the price they obtain depends on how much they try to sell. Let the demand curve they face be P = 100 + 512Q-1/2 a) What are their average and marginal costs of production expressed as functions of Q? b) What are their total and marginal revenues expressed as functions of Q? C) How much output per day should they produce if they expands production just to the point where marginal revenue equals marginal cost? What profit if any will they make in S/day?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The operator of a museum exhibit has found that 30% of the visitors donate the dollar that has been requested to help defray costs, with the others leaving without paying. Three visitors are on their...
-
The operator of a linear accelerator tells a tour group that it is used to give protons an energy of 600 MeV. (a) This 600 MeV must refer to the protons (1) total energy, (2) kinetic energy, (3) rest...
-
Youre the operator of a 15,000 V rms, 60 Hz electrical substation. When you get to work one day, you see that the station is delivering 6.0 MW of power with a power factor of 0.90. a. What is the rms...
-
The following list shows the top six pharmaceutical companies in the United States and their sales figures ($ millions) for a recent year. Use this information to construct a pie chart and a bar...
-
Using the ETF data from the previous problem: a. Create a sample variance/covariance matrix using the ETF returns. Use the matrix algebra functions or the COVARIANCE.S function. b. Using the Solver,...
-
A company reported average total assets of $1,240,000 in 2014 and $1,510,000 in 2015. Its net operating cash flow was $102,920 in 2014 and $138,920 in 2015. Calculate its cash flow on total assets...
-
Find the autocorrelation functions of the periodic functions shown in Fig. 14.24. x(t) 0 -xo (a) x(1) x0 (b) FIGURE 14.24 Periodic function of Problem 14.7.
-
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob ODonnell, a local merchant, to contribute the capital to form a partnership....
-
Your opportunity cost for capital is 8%. What is the project's Payback period, Net present value (NPV), and Internal rate of return? Assume the piece of equipment has no salvage value. Do you approve...
-
Times are slow for your company right now and with the rising costs of material and wages, your profits are at an all-time low. Because of this unfortunate situation, you will need to let some...
-
what extent does technology, such as artificial intelligence and automation, impact the dynamics of change management, and what measures should organizations take to ensure successful integration...
-
Of MLB, the NBA, and the NFL, which entity has the most financial risk and which has the least? Why? What are some of those risks? List all citations
-
Leveraged loans typically have A. Fixed Interest rates B. Variable interest rates Explain both rates briefly.
-
A bank makes a 6-year loan of $50,000 at an annual interest rate of %14. What is the yearly payment and the balance at the end of year 2?
-
Describe characteristics of addictive populations. Discuss the challenges of working with a specific addictive population such as alcoholism or drugs. Discuss the theoretical perspective(s) that you...
-
Your reflection should be four to six paragraphs in length and may consider some or all of the following questions: What message or statement do you believe director Spike Lee was trying to make with...
-
What are the 3 key differences between NoSQL and SQL? List 3 examples of NoSQL DBMS. In what situation/scenario would it be better to use a NoSQL database over an SQL database?
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
Convert the distribution in Exercise 2.3 to a a. Relative frequency distribution. b. Cumulative frequency distribution showing less than or within frequencies. Exercise 2.3 Age (Years) Licensed...
-
SUBWAY has grown to include more than 31,000 restaurants worldwide since they opened their first one in 1965. The accompanying data show the number of SUBWAY restaurants worldwide from 1985 through...
-
The 2007 top-grossing feature film was Spiderman 3, a product that brought in $336.5 million at the box office. The gross receipts for this and the rest of the top- 20 feature films of that year are...
-
Describe circumstances that might cause a client to understate assets such as cash and financial investments.
-
What prevents the person who opens incoming mail from being able to abstract cash collections from customers?
-
Select the best answer for each of the following situations and give reasons for your choice. a. You have been assigned to the year-end audit of a financial institution and are planning the timing of...
Study smarter with the SolutionInn App