Law of diminishing marginal product sets

Assignment Help Business Economics
Reference no: EM133129990

Cost Functions

The Acme Corporation has estimated its total cost function in an Excel spreadsheet and has come up with the following graph and equation:

1. Use the corresponding spreadsheet to make a graph showing total cost (as above), as well as total fixed cost and total variable cost. [Tip: this can be easily done in Excel by inserting a scatterplot (go to the Insert tab, find scatterplot in the "Charts" section) and choose one of the options that will plot the curves for you.] I've started the spreadsheet; you'll need to put in columns for TFC and TVC.

2. On the spreadsheet, in row 2, fill in the highlighted cell with the formula for average total cost. Then create columns for average fixed cost, average variable cost, average total cost, and marginal cost. Graph these with dollars on the vertical axis and quantity on the horizontal axis. [I strongly recommend not graphing the values for Q < 100, as the very high numbers for average total cost will make the rest of the chart look flat. Also: don't put the average and marginal values on the same graph with the totals from question 1, because the scales are so different.]

3. Does this look more like a set of short run or long run cost functions?

4. At what quantity does it appear that the law of diminishing marginal product sets in on the production function?

Reference no: EM133129990

Questions Cloud

Additional unit of software purchased : You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $10,000 to develop a statistical software package.
Journalize Angelleti Co entries for sale : Grayson Co. paid freight of $2,200. Assume that all discounts are taken. Journalize Angelleti Co.'s entries for (a) sale, and (b) payment of amount due
Review career portfolio : Who would be the most ideal person to review your career portfolio?
How would you recommend services for older adults : How would you recommend services for older adults? How would you improve the quality of life of the elderly population in a community
Law of diminishing marginal product sets : At what quantity does it appear that the law of diminishing marginal product sets in on the production function?
Improve the performance of the united states : Choosing one priority area, what could be done to improve the performance of the United States of America. Pay attention to possible planetary consequences.
Performance of the united states of america : Choosing one priority area, what could be done to improve the performance of the United States of America. Pay attention to possible planetary consequences.
Price elasticity of demand for netflix subscriptions : Suppose the demand for Netflix is given by: QN = a - bN PN + bH PH , where QN is the number of Netflix subscriptions, PN is the price of a Netflix plan and PH t
Define a perfectly competitive market : What four conditions define a perfectly competitive market?

Reviews

Write a Review

Business Economics Questions & Answers

  Sustainable competitive advantage

Analyze whether or not Harley-Davidson has a source of sustainable competitive advantage. Defend your answer using examples

  System relies on neurotransmitters to function

All of the nervous system relies on neurotransmitters to function. Many drugs and diseases act by changing the levels of neurotransmitters

  How the company used the marketing research process

Write a 1-2 page report about how the company used the marketing research process to develop this product. Be sure to discuss how each step in the process helped the company achieve their goals and objectives.

  What is the benefit-cost ratio for project a

1) The following data are for two mutually exclusive projects:

  How much you leave as a tip

A friend has taken you out to lunch and you offer to leave the tip. The bill including the tax came to $38.85. How much you leave as a tip? Explain.

  How does inflation rate affects a companies cash flow

How does inflation rate affects a companies cash flow? How can it be adjusted for in the financial statement!

  Identify an incentive conflict in firm

Identify an incentive conflict in your firm, or one you have read about, that reduced firm value. As part of your answer, discuss whether or not one or more of

  Which good has higher marginal utility

If the marginal rate of substitution of coffee for Pepsi is 3 and the price of a coffee is €2.50 while the price of a Pepsi is €1 then which is better value for money: another coffee or another Pepsi? Which good has higher marginal utility?

  What is the probability that the mean distance traveled

If a group of 60 drivers in that age group are randomly selected, what is the probability that the mean distance traveled each day

  Expenditure function and equilibrium level of gdp

a. Find the aggregate expenditure function and equilibrium level of GDP. b. Using a "Keynesian cross" (or 45-degree line) diagram, show graphically

  Protect skin from sun-related damage

What is the best way to protect your skin from sun-related damage? What are the advantages and disadvantages to sunscreens containing common active ingredients

  Illustrate what is the slope of the budget line if a

Assume that a consumer can buy only two goods, A and B, and has an income of $100. The price of A is $10 and the price of B is $20. Illustrate what is the slope of the budget line if A is measured horizontally and B is measured vertically.

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