Calculate the marginal costs and output ranges, Managerial Economics

Assignment Help:

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.


Related Discussions:- Calculate the marginal costs and output ranges

Sales maximization, how realistic is the sales maximisation model from your...

how realistic is the sales maximisation model from your experience with business objectives as persued by firms

Marginal cost, A firm in a perfectly competitive market invents a new situa...

A firm in a perfectly competitive market invents a new situation of production that lowers its marginal costs.  What happens to its output? What happens to the price it charges?

Compensatory financing, Compensatory Financing Two other schemes for a...

Compensatory Financing Two other schemes for alleviating the effects of commodity trade instability have been operating for a number of years.  These are the IMF's Compensator

Corporate profit maximization , Difference between corporate profit maximiz...

Difference between corporate profit maximization and maximization of shareholder wealth? Ans) Sure, profit maximization relates to profits *only* while shareholder wealth also i

What are the forecasting techniques, Write the forecasting techniques ...

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

Describe the managerial decisions, Describe the Managerial decisions Ma...

Describe the Managerial decisions Managerial decisions are an important component in the working wheel of an organisation. The failure or success of a business depends upon the

Elasticity of supply of the pens, A firm supplied 3000 pens at the rate of ...

A firm supplied 3000 pens at the rate of Rs 10. Next month, due to a rise of in the price to 22 rs per pen the supply of the firm increases to 5000 pens. Find the elasticity of sup

Dominant strategy, In a one-shot game, if you advertise and your rival adve...

In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits.  If neither of you advertises, your rival will make RM4 million and you w

Substitution effect on law of demand, Substitution Effect on law of demand ...

Substitution Effect on law of demand When price of a commodity falls it becomes comparatively cheaper if price of all other related goods, particularly of substitutes, remain c

Explain about isoquant map, Q. Explain about Isoquant Map? We can label...

Q. Explain about Isoquant Map? We can label isoquants in physical units of output without any difficulty. Because every isoquant signifies a specified level of output it's poss

Write Your Message!

Captcha
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