Calculate the marginal costs and output ranges, Managerial Economics

Assume that input prices are constant at r = 1, w = 1, with technology which consists of 5 processes having the following properties:

Process Inputs Capital

(machine hours)

Required Labor

(man hours)

Output per period

(in tons)

P1 7.5 1.0 10

P2 5.0 2.0 10

P3 3.75 3.0 10

P4 2.5 5.0 10

P5 0.0 12.0 10

A producer can purchase labor without limit, but can purchase machine-hour only up to a total of 75. Calculate

a) The producer's total and average cost of producing 100, 200, 300, 400 and 500 tons.

b) At what output levels will marginal cost change?

c) Give the marginal costs and output ranges over which each level of marginal cost is relevant.

Posted Date: 4/1/2013 6:16:35 AM | Location : United States







Related Discussions:- Calculate the marginal costs and output ranges, Assignment Help, Ask Question on Calculate the marginal costs and output ranges, Get Answer, Expert's Help, Calculate the marginal costs and output ranges Discussions

Write discussion on Calculate the marginal costs and output ranges
Your posts are moderated
Related Questions

Uses of Indifference Curve Analysis Indifference curve analysis is useful when studying welfare economics as follows: They are used to indicate the amount of income and

Discuss whether Indian Consumer goods industry is growing at the cost of future Profitability.

Write the forecasting techniques There are many forecasting techniques available to person assisting the business in planning its sales. Take for instance a forecasting metho

What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev

what is traditional theory of cost/explain with suitable diagram

The Economics of Population Population issues became matters of economic concern when it became increasingly apparent that the problem of excess population may be a serious ob

applicatiopn of qt in managerial decision making

Q. Show the Empirical analysis? Empirical analysis aimed at investigating nature of scale economies, degree of input complementarily orsubstitutability, or the nature and exten

Imagine an amusement park with a sole attraction: a roller coaster. For simplicity, the cost of providing a ride is zero. There is a single consumer with demand for rides on the ro