What is the average total cost of production

Assignment Help Macroeconomics

Reference no: EM13180700

Your firm operates three plants. The cost functions vary across the three plants.

Plant A:

Marginal Cost = 6Q

Average Variable Cost = 3Q

Average Fixed Cost =1000/Q

Plant B:

Marginal Cost =10Q

Average Variable Cost = 5Q

Average Fixed Cost =600/Q

Plant C:

Marginal Cost =12Q

Average Variable Cost = 6Q

Average Fixed Cost = 4000/Q

You can sell your output at a constant price of $600.

a) How much output should be produced at each plant?

b) What is the average total cost of production at each plant?

Reference no: EM13180700

Questions Cloud

Find the average labor productivity in us and russia : A study conducted by the Moscow-based management consulting firm Strategy Partners found that the average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productiv..

What is the maximum methylamine that can coexist : If the Ksp of Fe(OH)2 is 7.9 × 10-16, what is the maximum [Fe2+] that can coexist with these solutes in the solution?

What is the marginal cost per unit : A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $30.00 per unit for all successive units. Does price exceed aver..

Describe tpm-tqc and jit : Amazon's "autobot" recommended a book to an economist titled Quality maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defects

What is the average total cost of production : Your firm operates three plants. The cost functions vary across the three plants. Plant A: Marginal Cost = 6Q Average Variable Cost = 3Q Average Fixed Cost =1000/Q Plant B: How much output should be produced at each plant?

How does a budget deficit lead to an appreciating currency : How does a budget deficit lead to an appreciating currency and a trade dificit? Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, e..

What is the probability that they are identical : The notebookalso comes loaded with one of four different games. How many different combinations of colors and games are possible? If you were to order three different notebooks withoutstating preference on color or games, what is the probability t..

Determine the expected annual operating cost : A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.

Find the rate of return on a process : A packaging company needs to know the rate of return on a process which will cost $60,000, have an income of $25,000 per year, have an operating cost of $5,600 per year, and have a salvage value of $7,000 at the end of its five year life.

User Account

All Pages