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1.For the cost function C(Q) = 500 + 12Q + 4Q 2 + Q 3 , what is the marginal cos

ID: 1095978 • Letter: 1

Question

1.For the cost function C(Q) = 500 + 12Q + 4Q2 + Q3, what is the marginal cost of producing the eighth unit of output?

D.$852

Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $86.80 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is:

D.There is insufficient information to determine the average total costs.

Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $15 and the per-unit wage, w, is $125, then the average fixed cost of using 16 units of capital and 25 units of labor is:

A.$184 B.$268 C.$524

D.$852

Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $86.80 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is:

a.$5. B.$75. C.$90.

D.There is insufficient information to determine the average total costs.

Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $15 and the per-unit wage, w, is $125, then the average fixed cost of using 16 units of capital and 25 units of labor is:

$9. $12. $56. There is insufficient information to determine the average fixed costs.

Explanation / Answer

1.B

C(Q)= 500 + 12Q + 4Q2 + Q3

MC= dC/dQ = 12+8Q+3Q^2

MC(8) = 268

2. C

Q = K0.5L0.5

TC= wL+rK =20*49+86.8*25 =2170+980=3150

Q= 5*7=35

AC=TC/Q = 90

3. B

Fixed cost (cost of capiltal)= 15*16

TC = 16*15+25*125 = 3365

Q = 4*5=20

AFC=15*16/5*4= 12