Production and Cost Analysis Rasheeda Arthur, Sarah Fischer, Tera Ginnaty, Mike May, Shannon McMillan, Tiffany Sawyer, Tiffany Weiland ECO/365 Version 4 September 16, 2013 John Ilokwu Production and Cost Analysis Colander (2010) explains analyzing production and cost, and provides insight into how the abilities of market economies effect the organization of a society. In week two, Team C learned evaluating production and cost within a firm is a complex study involving several
Words: 828 - Pages: 4
table of costs: Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- $200 --- --- 1 20 20 300 $15.00 $5.00 2 50 30 400 8.00 3.33 3 90 40 500 5.56 2.50 4 120 30 600 5.00 3.33 5 140 20 700 5.00 5.00 6 150 10 800 5.33 10.00 7 155 5 900 5.81 20.00 a. See the table for marginal product. Marginal product rises at first, then declines because of diminishing marginal product. b. See the table for total cost. c. See the table for average total cost. Average
Words: 680 - Pages: 3
1. At the current level of output a firm's marginal cost equal 16 and marginal revenue equals 10. The firms A is producing the profit-maximizing amount. B should produce more. C should produce less. D Not enough information. 2. If the demand curve a monopoly faces is P = 100 - 2Q, then profit maximization A is achieved when 25 units are produced. B is achieved by setting price equal to 25. C is achieved only by shutting down in the short run. D cannot be determined solely from
Words: 1445 - Pages: 6
the marginal benefits and the marginal costs associated with the decision What decision that a person make with marginal benefits and the marginal costs. Benefits and cost marginal are affecting decision-making. The process that takes these two marginal, which helps someone, make a decision that affect his or her choices in the economics aspect. Example a company uses these two marginal in expending the business overseas. This works because if company wants to expand they see the marginal benefits
Words: 888 - Pages: 4
producers. Using the table, the producers will receive ________ per Twinkie and sell ________ Twinkies after the tax.| || B)|$1.20; 5,000| || || Use the following to answer question 5: Figure: Marginal Product of Labor 5.|(Figure: Marginal Product of Labor) Using the marginal product of labor
Words: 1028 - Pages: 5
competing firms to control prices or exclude entry of a new competitor in a market (Sullivan & Steven, 2003). Therefore, in this model, firms would be more likely to act as monopolists and enjoy more profits together. Then, setting marginal cost equal to marginal revenue and calculate the price and quantity, the profits will be maximized at this point .If the price discrimination is feasible, for example, Australian iron ore production industry might engage in third-degree price discrimination，charging
Words: 644 - Pages: 3
Econ 140, Sample Midterm I, Spring 2014 1. A firm has a total cost function of C(Q) = 50 + 10Q1/2. The firm experiences A. Economies of scale B. Constant returns to scale C. Diseconomies of scale D. All of the statements associated with this question are correct depending on the quantity Take derivative of Cost function with respect to Q to get marginal cost of Q. C’(Q) = 5 / Sqrt(q) Cost per unit decreasing as Q increases Thus the firm experiences economies of scale. If derivative
Words: 2979 - Pages: 12
greater that average total cost , price is equal to average total cost , price is greater than average variable cost and the decision of the firm whether shutdown or continue operating. To maximize profit we will use the marginal revenue equals marginal cost approach. (MR=MC) Natutunannatinnayung marginal revenue, itoyung additional revenue sapagproduceng additional quantity o karagdagangkitasapaggawangkaragdagangprodukto. Yung marginal cost namanitoyung additional cost sapagproduceng additional
Words: 477 - Pages: 2
total cost and marginal revenue and marginal cost. Marginal revenues is defined as the change in total revenue when more unit of a product is sold. Marginal cost is the cost that arises by producing one more unit of a product. It is not the same as the total cost that results out of fixed and variable costs and neither to total revenue that is the total money a firm receives by selling its products. However profit is when you subtract total cost from total revenue. Thus if marginal cost and marginal
Words: 436 - Pages: 2
Homework on Environmental Economics 1. Draw a graph showing the private marginal cost, social marginal cost, private marginal benefit, and social marginal benefit of gasoline when there is a negative externality – for example, dirty exhaust from a tailpipe. Assume that neither supply nor demand is perfectly elastic or perfectly inelastic. [pic] 2. If government chose to tackle the problem by taxing the sellers of gasoline a constant tax per gallon sold, show these things on your
Words: 568 - Pages: 3
