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
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The market demand for brand X has been estimated as Qx=1500-3Px-0.05I-2.5Py+7.5Pz

Describe about the Theory of profit Every industrial and business enterprise aims at maximising profit. Profit is the difference between total economic cost and totalrevenue. P

list all profession which generate personal income

Hayek explaination Under a fractional reserves system, it is possible for the banking system to supply resources to entrepreneurs for investment in excess of resources that are

CONCEPT AND PHASES OF TRADE CYCLE Broadly speaking, the trade or business cycles are those fluctuations which recur in economic activity with a certain degree of regularity fo

USES OF NATIONAL INCOME FIGURES We need national income statistics to measure the size of the "National cake' of goods and services available for competing uses o

Why does the demand curve slope downwards? As Figure above demonstrates, demand curve slopes downward to the right. Downward slope of the demand curve reads the law of demand i

a)      The production-possibilities curve is? b)      If there is a shortage in the provider of a product, we can conclude that its price: c)      An enhance in supply and a

It can be geometrically proved that two elasticity are equal, which is., QB=RD Let's first consider ΔAOB. If we draw a horizontal line from point Q to intersect the vertical axis a