Question: Suppose the cost function for your firm is: C = 50 + 4Q + 2Q 2 . a.) What is the average fixed cost of

Suppose the cost function for your firm is: C = 50 + 4Q + 2Q2.

a.) What is the average fixed cost of producing 5 units of output?

b.) What is the average variable cost of producing 5 units of output?

c.) What are the average total cost and marginal cost of producing 5 units of output?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

3. Suppose the cost function of a firm is given by C(q) = 2q - 7q +9q +4 where a [0, 00), suggesting that the firm can produce any positive quantity of output. (a) Find the expressions for AC and...

Q:

l l. A rm faces following production function: q = K515. Suppose the rental rate of capital F40 and wage rate for labor w=l 0. (25) a) b) C) d) 6) For a given level of output, what should be the...

Q:

(Q2 - 20pts) Suppose a firm's total cost curve is given TC = Q2 + 10 . Q + 100, where Q is output. Assume Q 2 0. (A - 2pts) What is the fixed cost (FC)? FC = 100 (B - 2pts) What is the variable cost...

Q:

Suppose the cost function for a firm is given by C(Q) = 60 + 4Q+ 2Q^2. a. If the firm sells output in a perfectly competitive market and other firmsi n the industry sell output at a price of $20,...

Q:

Problem 1 [30 points] Suppose you are given the following information about an industry: Market demand: Q" = 6500 - 100P Market supply: Q = 1200P Firm total cost function: C(q) = 722+ Firm marginal...

Q:

Answer the following questions. Provide explanations where necessary.Thanks. It is desired to investigate the level of premium charged by two companies for contents policies for houses in a certain...

Q:

2. Aero Corporation's total cost function is estimated as TC = 480 + 0.05Q2 + 18Q. (a) Derive average fixed cost (AFC), average cost (AC) and marginal cost (MC) functions. (b) Calculate the average...

Q:

2. (10) Read the followingarticle from Business Insider about Bronco "Two Buck Chuck" Wine Production then answer the following questions. a. (5)The article lists five reasons why Bronco Wine is able...

Q:

The short term total cost function of a firm is TC(Q) = 100 + 10Q?, where Q is the output. If the output is 10, which of the following is FALSE? a. the average variable cost is 1000 b. the total...

Q:

(10) Read the following article from Business Insider about Bronco "Two Buck Chuck" Wine Production then answer the following questions. a. (5) The article lists five reasons why Bronco Wine is able...

Q:

Why could growth through a series of bolt-on acquisitions create more value than growth through a single large acquisition? (Consider premium paid and synergies created for each individual...

Q:

Chuck Enterprises has current assets of $300,000, and total assets of $750,000. It also has current liabilities of $125,000, common equity of $250,000, and retained earnings of $85,000. How much...

Q:

The internal rate of return is the discount rate that equates the present value of the project's future free cash flows with the project's initial outlay. 1 ) True 2 ) False

Q:

q15 Question 15 2 Points A top manager is trying to remain competitive in the market by lowering production costs. He compared many alternatives' financial costs and benefits. Accordingly, he decided...

Q:

1. To gain insight about the information processes operating in a communication process.

Q:

4. As your starting point, take two everyday decisions you have made during the past year. Discuss these decisions based on the following question: Why do you think your decisions may have been wrong?

Q:

1. To provide an understanding that social facts are mentally constructed and do not exist as an objective reality.