Find the total cost function

Assignment Help Microeconomics
Reference no: EM132141945

Question: Consider a firm that makes plastic cups. It produces the cups using two inputs: metal molds and plastic pellets that are melted and injected into the molds. The firm only needs one metal mold to produce any number of cups. As long as it has one mold, the firm can produce y = In(x + 1) cups when it uses x pellets. Metal molds cost $10 each and the plastic pellets cost $1 each. Find the total cost function, TC(y), and the average total cost function, ATC(y), for this firm. (This cost function is not standard: it is not like other examples we have done. However, the intuition behind it is the same: the function TC(y) should tell you the minimum possible cost of producing y units of output.)

Reference no: EM132141945

Questions Cloud

Expansions and contractions in the economy : Does this make business cycle, expansions and contractions in the economy, shorter or longer?
What is president trump position on the tpp : What is President Trump's position on the TPP? Citation?
What is the upper control limit for this control chart : What is the upper control limit for this control chart? What impact does JIT (Just In Time) have on inventory management?
What is the purpose of miranda warnings : What is the purpose of Miranda warnings? Why are Miranda warnings especially important to law enforcement officers in domestic violence cases?
Find the total cost function : Consider a firm that makes plastic cups. It produces the cups using two inputs: metal molds and plastic pellets that are melted and injected into the molds.
What are the economic implications : What are the economic implications? Provide a credible citation.
Relevant theoretical contributions and academic studies : Discuss your answer, with reference to the key relevant theoretical contributions and academic studies that were reviewed during the semester
What factors should firm consider in formulating strategy : Consider a firm that is considering marketing its innovation in multiple countries. What factors should this firm consider in formulating its protection.
What are the political implications of development : What are the political implications of this development? Provide a credible citation

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain in the challenges in measuring consumer surplus

Explain in the challenges in measuring consumer surplus of a free product like major online applications, such as Facebook and Google Search.

  Calculate the new supply of dollars at each exchange rate

Calculate the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate, given the original demand for dollars?

  How do local laws local taste preferences and local culture

generally speaking many companies are interested in the potential cost savings of using the same product and

  Examine the related impact to the organization process

Examine the related impact to the organization process. Determine the key factors that will drive the financial planning process for most organizations.

  Consider the model of corruption

Political Economy GV307 : Consider the model of “no theft” where the consumer pays the official government price plus a bribe in order to obtain X. Assume that the official marginal revenue for selling the  good in this context is given.

  Types of markets in microeconomic analysis

What are the four major types of markets in microeconomic analysis and what are the key characteristics that distinguish these markets?

  Explain the declines in student achievement

Most elementary and high school teachers have been women, both in the past and present. What sorts of changes in their labor market might explain the declines.

  Massive cigarette advertising on television was commonplace

massive cigarette advertising on television was commonplace until laws prohibiting such advertising were introduced in

  When might common application improve the quality of matches

In the past 20 years, many colleges have chosen to use a standardized common application form that includes the same questions, essays, and so on.

  Make the trade profitable to both parties

If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade po..

  Find the marginal revenue generated by unit

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be above the price because the output effect outweighs.

  Suppose that under a proposed welfare plan

Suppose that under a proposed welfare plan, poor people are eligible to receive a lump-sum payment of $50 each day. However, if they accept this welfare payment, they must pay a high tax, t = 50%, on all additional income they might earn by working. ..

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