Calculate the marginal cost of production

Assignment Help Business Economics

Reference no: EM131086102

Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q 1) What does this function imply about the effect of the law of diminishing returns on Kelson's short run function? 2) Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. 3) Assume Kelson operates as a price taker in a competitive market. What is this firm's profit maximizing level of output if the market price is $175? 4) Compute Kelson's short run supply curve for its product.

Reference no: EM131086102

Questions Cloud

Government intervention and the producer surplus : Demand: P=50-QD and Supply: P= 25+QS The government decides to impose a price floor of $40. Illustrate graphically the different economics effects of such intervention in this market. Calculate and compute the deadweight loss generated by the governm..

Draw the interconnection diagram for the clos network : Draw the interconnection diagram for the Clos network having n = 16 inputs and outputs, i.e., having 8 switches in each of the 4 stages.

What is the definition of health and healthy behavior : What is the definition of Health? What is the definition of Healthy Behavior? What are the 5 Social determinant of health? The cultural impact on health. Understand the purpose for the Healthy people 2020 initiative. What is the role of the World Hea..

Designing a solution for a programming problem : In your opinion, what are the three biggest challenges in planning and designing a solution for a programming problem? What can you do to overcome these challenges? How would you apply these techniques to the programs in this class?

Calculate the marginal cost of production : Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q. What does this function imply about the effect of the law of diminishing returns on Kelson's ..

Emulations among the principal system classes : Which of these emulations are possible in a failure-prone system? Explain.

What information regarding nonprofit administration : Summarize your understanding of the difference between nonprofit and for-profit organizations. Describe your personal experiences with nonprofit organizations (employment, volunteer, financial support, services received).

Quantity result in approximately no change in total revenue : The demand equation for a cola-type soft drink in general is Q = 20 -2P, where Q stands for quantity and P stands for price. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points? Calculate arc el..

Is the contract in the money : If an investor bought 1 XYZ Feb 60 call at 4 when the market is 62. Is the contract in the money, at the money or out of the money? Does the contract have instrinic value? If yes, what is it?

User Account

All Pages