Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the next four questions, suppose a music publisher in medieval England pays $100 to prepare a plate for printing music. After the plate is

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
For the next four questions, suppose a music publisher in medieval England pays $100 to prepare a plate for printing music. After the plate is prepared, the publisher can make as many copies of the music as she wants for $2 per copy. Give an equation for the publisher's total cost function, where q is the number of copies. Select one: O a. TC = 100 + q O b. TC = 100 + 2q O c. TC = 102q O d. TC= 2q Give an equation for the publisher's AVC function. Select one: O a. AVC = 1 O b. AVC = 2q O c. AVC = 2 O d. AVC = 102 Give an equation for the publisher's ATC function. Select one: O a. ATC =2 O b. ATC = (100 / q) + 1 O c. ATC = 102 O d. ATC = (100 / q) + 2For the next seven questions, assume a firm's production function is q = L-5 + K. . The cost of labor is fixed at w = 1 and the cost of capital is fixed at r = 8. Suppose that capital is fixed at K = 9 in the short-run. Find the short-run cost function. Select one: O a. Cost = q2 - 6q + 72 O b. Cost = q2 + 6q+81 O c. Cost = q2 - 6q - 81 O d. Cost = q2 - 6q + 81 Find the marginal cost function. Select one: O a. MC = 2q +6 O b. MC =q - 6 O c. MC = q2 - 6q O d. MC=2q - 6 Does the firm's production process exhibit diminishing marginal returns in the short-run? Select one: O a. Yes O b. NoFind the long-run cost function. Select one: O a. LRC = (8q2 /9) O b. LRC =(9q2 / 8) O c. LRC = (8q / 9) O d. LRC =(9q/ 8) Assume a firm's production function is q = L0.5 + K.5 . The cost of labor is fixed at w = 1 and the cost of capital is fixed at r = 8. Find the long-run average cost function. Select one: O a. LRAC = (9 / 8) O b. LRAC = (8 / 9) O c. LRAC = (9q / 8) O d. LRAC = (8q / 9) What scale properties does this cost function display? Select one: O a. diseconomies of scale O b. economies of scale O c. no economies of scale

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

Step: 3

blur-text-image

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

International Macroeconomics

Authors: Robert C. Feenstra, Alan M. Taylor

Fourth Edition

1319061729, 978-1319061722

More Books

Students also viewed these Economics questions

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

Explain the sources of recruitment.

Answered: 1 week ago

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago

Question

4. What means will you use to achieve these values?

Answered: 1 week ago