Homework answers / question archive / If AVC = Q 2 - 10Q + 120 and MC = 6Q 2 - 40Q + 120, then the quantity at which AVC is minimized is: a

If AVC = Q 2 - 10Q + 120 and MC = 6Q 2 - 40Q + 120, then the quantity at which AVC is minimized is: a

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If AVC = Q 2 - 10Q + 120 and MC = 6Q 2 - 40Q + 120, then the quantity at which AVC is minimized is: a. 11

b. 5

c. 1

d. 6

A firm's production function is Q = 2KL. Its marginal product of capital is 2L, and its marginal product of labor is 2K. The wage rate is $4 per hour, and the rental rate of capital is $5 per hour. If the firm wishes to produce 150 units of output in the long run, how many units of K and L should it employ?

a. K = 7.75; L = 9.68.

b. K = 4.23; L = 5.45.

c. K = 2.5; L = 5.

d. K = 6.33; L = 7.91.

A Toyota Camry costs $19,400 and has an average gas mileage of 24 mpg. A Toyota Prius costs $26,000 and has an average gas mileage of 55 mpg. Assuming gas costs $4 per gallon, generate total cost equations as a function of miles driven for each of these cars and identify the fixed and variable costs. How many miles do you have to drive before the two cars have the same total cost?

a. 10,000

b. 49,891

c. 70,258

d. 25,723

Philo T. Farmsworth is a corn farmer with a 40-acre tract of land. Each acre can produce 100 bushels of corn. The cost of planting the tract in corn is $20,000, and the cost of harvesting the corn is $10,000. In May, when corn is selling for $10 per bushel, Philo plants his crop. In September, the price of corn has fallen to $2 per bushel. What should Philo do, and why?

a. Philo should not harvest the corn, since the cost to harvest exceeds the revenues from selling the corn; he'll have economic losses of $22,000 this way.

b. Philo should harvest the corn, since it's already been planted; he'll have economic profit of $8,000 this way.

c. Philo should harvest the corn, since it's already been planted; he'll have economic losses of $2,000 this way.

d. Philo should not harvest the corn, since the cost to harvest exceeds the revenues from selling the corn; he'll have economic losses of $20,000 this way.