What is the firm total cost function

Assignment Help Business Economics
Reference no: EM133134204

1. A firm has a fixed production cost of $5000 and a constant marginal cost of production of $500 per unit produced.

(a) What is the firm's total cost function? Average cost function? These functions, C(q) and AC(q) (or T C(q) and AT C(q)) describe total cost and average cost for any value of q.

(b) If this firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.

Reference no: EM133134204

Questions Cloud

How does covid-19 cause environmental pollution : How does COVID-19 cause environmental pollution?
What industry supply and demand problem has improved : Consider what industry supply and demand problem has improved or worsened over time, due to nursing shortage. Please include references!
Calculate the equivalent units for materials : The March production data for department B is: Beginning WIP is 0, Calculate the equivalent units for materials, labor and overhead
Introducing new project to senior management : It's the moment of truth: the first step in introducing the new project to senior management.
What is the firm total cost function : 1. A firm has a fixed production cost of $5000 and a constant marginal cost of production of $500 per unit produced.
Talk about the law of demand : 1. Make up a story that involves a consumer (demander) making a decision to buy or not buy something based on tastes and preferences.
Explain the three components of value for money : One of the key principles of financial management in the public sector is achieving value for money. Explain the three components of value for money
What is the value of the marginal revenue : What is the value of the marginal revenue when the total revenue increases, is maximum, or decreases?
What hidden costs might emerge : Starbucks is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It speculates that the only addit

Reviews

Write a Review

Business Economics Questions & Answers

  Demand and win the competition in the market

Different structure requires different strategy to cater the demand and win the competition in the market. You are required to explain (4) market structures

  Compute the new unemployment rate of eagle nest

Carter gives up looking for work and enrolls in Loris College. Compute the new unemployment rate of Eagle's Nest.

  Lower price than you could have gotten in the free market

Would you feel it would be right if the government made you sell at a much lower price than you could have gotten in the free market?

  Discuss how a business manager might use cpi statistics

Discuss how a business manager might use CPI statistics? Find the annual CPI index numbers for gasoline prices for the years of 1995, 2000, 2005, 2010 and 2015.

  What is the net present value of the proposed upgrade

By spending $20K now, $25K three years from now, and $30K five years from now to upgrade presently owned equipment, a company can increase its annual revenue by $15K in years 1 through 5 and by $18K per year in years 6 through 10. At an interest rate..

  The fed is more likely to use the discount rate

The FED is more likely to use the discount rate and the open market operation for short-term money supply management rather than the reserve requirement. Why?

  Determining the federal taxable income

The bonds may be purchased now for $1000. The income from corporation bonds must be included in federal taxable income.

  Analyze production data and prepare a proposal

analyze the following production data and prepare a proposal suggesting how to maximize profits.

  Coase theorem to hold-how do externalities affect markets

How do externalities affect markets? Suppose a common resource –wood in a public forest- is being overused because residents consider the benefit of gaining firewood or wood for building but do not account for the cost of deforestation when chopping ..

  How many fewer workers would have been unemployed

In 2016, there were approximately 159.2 million people in the labor force and the unemployment rate was 4.9 percent. If the unemployment rate

  What is the probability that 2 or more children become sick

What is the probability that 2 or more children become sick? Please show your work for my understanding.

  In a perfectly competitive market for electricity

In a perfectly competitive market for electricity, consumers’ benefit (in dollars) from consuming electricity is given by B(Q)= -Q2+1000 Q, where Q is the unit of electricity consumed. Derive the demand for electricity in this market.

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