User Account

All Pages

Explain total marginal cost of production

Assignment Help Business Economics
Reference no: EM132953275

A firm has two factories for which costs are given by: Factory 1: C1 (Q1) = 1.5Q1^2Factory 2: C2 (Q2) = 0.5Q2^2

The firm faces the following demand curve:

Q = 140 - 2P, where Q is the total output (i.e. Q = Q1 + Q2)

  1. Calculate the values of Q1, Q2, Q and P that maximize profits.
  2. Find the maximum profit.
  3. Show your answers from part a. graphically. Draw the demand (D), marginal revenue (MR), marginal cost of production in factory 1 (MC1), marginal cost of production in factory 2 (MC2) and total marginal cost of production (MCT). Label your axis, the intercepts and the points of interest (Q1, Q2, Q, MR and P that maximize profits).

Reference no: EM132953275

Questions Cloud

Estimate Expo cost of equity using the CAPM : Expo has a beta of 1.8. The Treasury bond yield is 3% and the return on the S&P 500 is 10%. Estimate Expo's cost of equity using the CAPM
Solve total service department cost allocated : Motorcade Company has three service departments (S1, S2, and S3), Calculate the total service department cost allocated to production department P1
What is the total economic cost : Suppose Kristin has purchased a non-refundable and non-transferable ticket for the new Fast and Furious movie at a local movie theater.
Lead in policymaking : Under what circumstances are legislative bodies likely to take the lead in policymaking?
Explain total marginal cost of production : A firm has two factories for which costs are given by: Factory 1: C1 (Q1) = 1.5Q1^2Factory 2: C2 (Q2) = 0.5Q2^2
Explain the role that the companies acts have : Explain the role that the Companies Acts have in the preparation and presentation of published accounts
Compute the timing excutation for every frame : Compute the timing excutation for every frame and at the end compute timing excutation for all frames together
Prepare entries to record the partial year depreciation : Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the separate assumptions
How much is estimated warranty liability for copier as dec : Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty. How much warranty expense does the company report in 2018 for this copier?

Reviews

Write a Review

Business Economics Questions & Answers

  Compute the equilibrium wage and capital return

Consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. a) Compute the equilibrium wage and capital return. b) Compute total p..

  Explain pollution reduction should appalachian coal mining

Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.

  Participating countries would need to reduce traffis-quotas

In order to form a common market or an economic union, the participating countries would need to reduce their traffis and quotas, but what else specifically would they have to agree to do?

  Compute the expected value of the distribution

Consider the probability distribution shown below. x 0 1 2 P(x) 0.45 0.30 0.25 Compute the expected value of the distribution. (Enter a number.)

  Design power targets

What are the changes that are provided to meet design power targets?

  About relative marginal products of nurses and robots

Suppose that hospitals use nurses (N), doctors (D) to perform surgeries (Q). The production function for surgeries is: Q = F(N;D), where F(N;D) is some function that increases in N and D. Assume that the marginal products of N and D are diminishing

  Pre-embargo price of gasoline

Suppose an oil embargo results in a 20% reduction in the supply of gasoline in the U.S., and the price elasticity of demand for gasoline in the U.S. is .75.

  Local firm produces recliner sofas and wishes

A local firm produces recliner sofas and wishes to expand production. The company currently employs sixteen workers who share twelve tool sets.

  Organization lead to more positive work attitudes

Shared Values between employees and the organization lead to more positive work attitudes

  Equilibrium price-quantity-number of firms-output per firm

Consider an industry in which all firms have identical technology given by a production function: q = min K α , L 1 − α 1/2 , where q is the level of output, α is some constant between 0 and 1, and K and L are two inputs.  Describe the long-run equil..

  Transfer payments have on country gross domestic product

In at least three well composed paragraphs, please describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).

  What is the profit-maximizing level of demand

A waterpark is the only one in a small town. Based on past summer season’s ticket sales, they estimate that the relationship between the monthly demand D (in persons) and price of a ticket p (in USD/person) in the town is described by p=44-0.0005 D. ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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