Draw the cost function

Assignment Help Microeconomics
Reference no: EM132511929

To see how cost functions can have different shapes from the one we drew for Beautiful Cars, consider the market for cereals. For Apple-Cinnamon Cheerios, we assumed the average cost was constant, so that the unit cost of a pound of cereal was equal to $2, regardless of the quantity produced.

a. Draw the cost function (also called the total cost curve) for this case.

b. What do the marginal and average cost functions look like?

c. Now suppose that the marginal cost of producing a pound of Cheerios was $2, whatever the quantity, but there were also some fixed production costs. Draw the total, marginal, and average cost curves in this case.

Reference no: EM132511929

Questions Cloud

Determine free cash flow for ivanhoe industries : Determine free cash flow for Ivanhoe Industries for the first quarter of 2020. In the first quarter, Ivanhoe had depreciation expense of $193,000
Explain at least four factors that could be responsible : It was recently noticed that the price of milk has decreased. Explain at least four factors that could be responsible for the decrease in price
Compute the cash paid for dividends : Using this information, compute the cash paid for dividends in 20X2. (Write the dollar amount of your answer. Do not write the dollar sign.)
Do you feel the benefits of cloud computing : Do you feel the benefits of cloud computing are worth the threats and vulnerabilities ?
Draw the cost function : Draw the cost function (also called the total cost curve) for this case. What do the marginal and average cost functions look like?
How much equipment portland company purchase during year : How much equipment did Portland Company purchase during the year? Write the dollar amount of your answer. (Do not write the dollar sign.)
Find the entry to record the retirement of the bond would : Bond was $120,742. The total amount paid to retire this bond was $120,000. The entry to record the retirement of this bond would include a
Propose a product development process for product : Select a Company in the UAE you are familiar with, then propose a product development process for one of its products or services
Disaster recovery plan that outlines emergency strategies : Create a disaster recovery plan that outlines emergency strategies, backup procedures, recovery steps, and a test plan.

Reviews

Write a Review

Microeconomics Questions & Answers

  What do they mean by a person long-run self

In an article in the Quarterly Journal of Economics, Ted O'Donoghue and Matthew Rabin make the following observation: "People have self-control problems caused by a tendency to pursue immediate gratification in a way that their ‘long-run selves' ..

  Build and validate a multiple regression modelexplicitly

build and validate a multiple regression model.explicitly describe the following choose the dependent as well as the

  Did pfizer violate any ethical standards

Rabi Abdullahi and other Nigerian children filed a suit in a U.S. federal district court against Pfizer, alleging a violation of a customary international law norm prohibiting involuntary medical experimentation on humans. Did Pfizer violate any e..

  Analyze the economys short-run fluctuations

Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause expansions and recessions using the model of aggregate

  Shit the demand curve or supply curve for loan able funds

Suppose a fiscal stimulus package that called for a large increase in government spending actually increases governments’ budget deficit dramatically. When the government runs a larger budget deficit, dose that shit the demand curve or the supply cur..

  What was the role of population in the rapid growth

Analyze the GDP growth of China before and after the Asian Financial Crisis in 1997. Discuss the factors that accounted for the rapid growth.

  What is the lowest price firms will sell their goods

Suppose you are given the following information about an industry: QD = 8000 - 100p; What is the lowest price firms will sell their goods at in the long run? In other words, what is the long-run industry supply curve? Explain

  Making zero economic profit

The AB Manufacturing Company has hired an economist to evaluate its financial situation. She explains to the board of directors that the company is making zero

  Impact of a change in government spending

How does the multiplier tell us the impact of a change in government spending?

  Calculate optimal consumption

Calculate John's optimal consumption bundle, (X, Y). (Hint: Since John's indif-ference curves are not smooth and \curvy", we cannot use MRS = MRT to solve for the optimal bundle. Draw a diagram to see where the John's optimal bundle must be on his ..

  Find the nash bargaining solution for this situation

Suppose a union and an employer start to negotiate on January 1, 1998 over wages to be paid for the year 1998. There will be 50 paid weeks in the year, Find the Nash bargaining solution for this situation

  Describe the cultural impacts of each organization

Describe the cultural impacts of each organization. Describe the communication flow. Describe the communication barriers that were considered.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd