Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me with this? Sleeping bag production for the Sleepwell Company has cost C (Q) = Q3 - 10Q2 + 35Q + 196.

can you help me with this?

image text in transcribed
Sleeping bag production for the Sleepwell Company has cost C (Q) = Q3 - 10Q2 + 35Q + 196. The marginal cost curve for their production is MC(Q) = 3Q2- 200 + 35. a) Identify both the shutdown point and the minimum average cost. (Hint: if you have access to a spreadsheet program, you may find it easier if you put into it the formulas for AVC, AC, and MC for values from Q = 1 to Q = 10) Note that FC = C(Q = 0) = 196; Entries for AC(0) and AVC(0) are empty because averaging would involve dividing by zero. b) The price of a sleeping bag is currently $67. How many sleeping bags will Sleepwell produce? What will be its profits? POINTS: 1/2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Economics

Authors: Bradley Schiller

7th Edition

0073375802, 9780073375809

More Books

Students also viewed these Economics questions

Question

2. I try to be as logical as possible

Answered: 1 week ago