Question

Otto-Biscuit Industries has hired you as their economic consultant. After studying the firm quantitatively, you have...

Otto-Biscuit Industries has hired you as their economic consultant. After studying the firm quantitatively, you have generated a total cost function for the firm.
Let this function be TC = 1200 + 7Q + 4Q2.

(a) From this function, derive the ATC function for Otto-Biscuit Industries.

(b) Calculate the dollar amount of average fixed costs for 300 units of output.

(c) Calculate the dollar amount of average variable costs for 700 units of output.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 1 Otto-Biscuit Industries has hired you as their economic consultant. After studying the firm quantitatively,...
Question 1 Otto-Biscuit Industries has hired you as their economic consultant. After studying the firm quantitatively, you have generated a total cost function for the firm. Let this function be TC = 1200 + 7Q + 4Q2. (a) From this function, derive the ATC function for Otto-Biscuit Industries. (b) Calculate the dollar amount of average fixed costs for 300 units of output. (c) Calculate the dollar amount of average variable costs for 700 units of output. Please show full calculations!
1. In the short run, the firm ________ change the number of workers it employs but...
1. In the short run, the firm ________ change the number of workers it employs but ________ change the size of its plant. A) can; can B) can; cannot C) cannot; can D) cannot; cannot 2.Jill runs a factory that makes lie detectors in Little Rock, Arkansas. This month, Jill's 34 workers produced 690 machines. Suppose Jill adds one more worker and, as a result, her factory's output increases to 700. Jill's marginal product of labor from the last worker...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $4.7 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.9 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $4.4 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.9 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT