Find the total cost function

Assignment Help Microeconomics

Reference no: EM131790043

Question: Consider a firm that makes plastic cups. It produces the cups using two inputs: metal molds and plastic pellets that are melted and injected into the molds. The firm only needs one metal mold to produce any number of cups. As long as it has one mold, the firm can produce y = In(x + 1) cups when it uses x pellets. Metal molds cost $10 each and the plastic pellets cost $1 each. Find the total cost function, TC(y), and the average total cost function, ATC(y), for this firm. (This cost function is not standard: it is not like other examples we have done. However, the intuition behind it is the same: the function TC(y) should tell you the minimum possible cost of producing y units of output.)

Reference no: EM131790043

Questions Cloud

Find the relative maxima : Find the relative maxima, relative minima, and points of inflection, and sketch the graphs of the functions, in Problem.

Classify the collateral-possible solutions-consumer goods : Classify the following collateral. Possible Solutions: consumer goods, equipment, farm products, inventory, documents of title,

Find the relative maxima-relative minima : Find the relative maxima, relative minima, and points of inflection, and sketch the graphs of the functions, in Problem.

What is the future value placed in a savings account : What is the future value of $1000 placed in a savings account pays 10%, compounded quarterly? Your answer should be correct to two decimal places.

Find the total cost function : Consider a firm that makes plastic cups. It produces the cups using two inputs: metal molds and plastic pellets that are melted and injected into the molds.

Find the relative maxima : Find the relative maxima, relative minima, and points of inflection, and sketch the graphs of the functions, in Problem.

How the bonds would be reported on the january two : All of the bonds will be issued on January 1, 2016. Show how the bonds would be reported on the January 2, 2016, balance sheet if they are issued at 102.

Determine the number of equivalent units : Question - EUP computation; normal and abnormal loss; FIFO, Determine the number of equivalent units for direct material

Calculate the first-stage pro forma financial statements : Recalculate the first-stage pro forma financial statements under these two assumptions and calculate the required external financing(All figures are in thousand

User Account

All Pages