Derive an expression for average cost

Assignment Help Business Economics
Reference no: EM13852791

Let the cost function be C= 100 + 4q+ 4q(2).

Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At what production level are scale economies exhausted?

Reference no: EM13852791

Questions Cloud

Complete the templates selling price : Complete the templates Selling price & GM - Markup and Revenue, COGS, GM template.
Is the market currently over or under producing this good : Suppose that demand for a product is Q = 1000 – P and supply is Q = 9P. Furthermore, suppose that the marginal external damage of this product is $20 per unit. Suppose this is a negative production externality. Calculate the Q currently being produce..
Prepare the journal entry to amortize patent at year end : Tandem Industries purchased a patent on January 1, 2014, for $2,000,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. Seminole Partners purchased a fran..
Development of a strategic plan for a business : Is strategic planning as important for a small company as for a large company? Why or why not? How would you approach the development of a strategic plan for a business you own
Derive an expression for average cost : Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At what production level are scale economies exhausted?
How much will be demanded after the new copayment : Currently, there is a $0.50 copayment on drugs. The HMO has decided to raise this to $1.00 per prescription. The cost of a prescription is $6.00, which mean the HMO's contribution to the total cost will fall from $5.50 to $5.00. How much will be dema..
What is your prediction of the long run effects : NY state will soon implement a $15/hour minimum wage for fast food workers. What is your prediction of the short run effects of this policy? What is your prediction of the long run effects?
Represents the physical capital resource : When a chef creates a dinner plate of food for a customer, which of the following represents the physical capital resource?
Returns to scale do these production functions exhibit : The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..

Reviews

Write a Review

Business Economics Questions & Answers

  Raise revenues to fund public projects like schools

Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..

  The potential public relations ramifications

Sensitivity to a minority group is as important as being aware of and using the language of that group effectively. Insensitivity towards any group can cost an organization money and opportunity. What do you think the PR department should do inside t..

  Find the optimal output and retail price for a vertically

Find the optimal output and retail price for a vertically integrated monopolist, either using a graph or calculus. Illustrate answer with graph.

  Marginal product is above the average product of labor

Explain in words why an employer would never want to stop increasing the quantity of labor employed when the marginal product is above the average product of labor.

  How the fed can ensure that nominal interest rates

In fact, nominal interest rates do not change significantly in the fourth quarter of the year, due to deliberate Fed policy. Explain and show graphically how the Fed can ensure that nominal interest rates remain stable around Christmas.

  Only one equilibrium rent

Assume in this market all apartments are identical, so there is only one equilibrium rent. Show the rent as $800 per month.

  Illustrate entry barriers exist in the fast food industry

Illustrate the entry barriers exist in the fast food industry. Compute the labor participation rate: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150.

  Explain how central bank manages a nation monetary system

Explain how central bank manages a nation's monetary system. Outline stated direction of recent monetary policy in United States.

  Effect of the tax on the quantity sold

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 13,000 bottles of wine are sold every week; consumers pay $5 per bottle, ..

  Q1 do you think that frustrates groups like the aspca who

q1. do you think that frustrates groups like the aspca who believe the wto is undermining their effort to make some us

  What differences in behavior of the victims might you expect

An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrange..

  Wn internal auditors at this point also the dual system

Elucidate however, are not sure of their own internal auditors at this point also the dual system in place.

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