Question 1

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 400 old jokes for which he paid 2 dollars each.If the wage rate for cartoonists is 5 dollars, then the total cost of producing 54 comics books is

A)1,205 dollars.
B)1,807.50 dollars.
C)602.50 dollars.
D)1,259 dollars.
E)301.25 dollars.

Accepted Answer

To find the total cost, first determine the amount of labor (L) needed to produce 54 comic books using the production function. Given J = 400, solve for L in the equation 0.1(400)^1/2 L^3/4 = 54. Once L is found, calculate the cost of labor (L * wage rate) and add the cost of jokes (400 jokes * $2 each). The total cost is the sum of these two amounts.

Question 2

if Mr.Dent Carr's total costs were 2s² + 75s + 100, then if he repairs 25 cars, his average variable costs will be A)$250. B)$125. C)$129. D)$175. E)$87.50.

Accepted Answer

$125.&#10;

Question 3

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

A)at least 1,410 cars per year.
B)no more than 700 cars per year.
C)no more than 1,400 cars per year.
D)at least 1,400 cars per year.
E)at least 700 cars per year.

at least 1,400 cars per year.

Accepted Answer

To determine the best choice, we need to compare the costs of the two options (low-quality car smasher vs high-quality hydraulic car smasher) for different numbers of cars.

For the low-quality car smasher option, the annual cost is:
$200 (cost of owning the smasher) + $5 per car (cost of burying cars) = $200 + $5x

For the high-quality hydraulic car smasher option, the annual cost is:
$550 (cost of owning the smasher) + $0.75 per car (cost of disposing of cars) = $550 + $0.75x

We need to find the number of cars, x, at which the cost of the high-quality option is lower than the cost of the low-quality option. In other words, we need to solve the inequality:

$550 + $0.75x < $200 + $5x

Simplifying this inequality, we get:

$350 < $4.25x

x > 82.35

This means that if Rex plans to dispose of at least 1,400 cars per year, the high-quality hydraulic car smasher option is the best choice. If he plans to dispose of fewer cars, the low-quality option is cheaper. Therefore, the answer is D.

Question 4

Mary Magnolia has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 400 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $5 per unit, how many bouquets per month should she sell in the short run?

A)200
B)1,500
C)1,000
D)400
E)1,100

Accepted Answer

We need to find the quantity of bouquets that Mary Magnolia should sell in the short run, so that she can cover her variable costs, which are dependent on the number of bouquets sold per month and the square footage of her shop. We are given the formula for her variable costs as y²/F, where y is the number of bouquets sold. We can substitute the given values in the formula and simplify it as follows: Variable costs per bouquet = y²/F = y²/400 Now, we know that the price of a bouquet is $5 per unit, which means that Mary's revenue from selling y bouquets will be $5y. In order to cover her variable costs, her revenue needs to be greater than or equal to her variable costs, i.e., Revenue ≥ Variable costs 5y ≥ y²/400 Simplifying this inequality, we get: y ≥ 400 Therefore, Mary Magnolia needs to sell at least 400 bouquets per month to cover her variable costs, given the lease and shop size constraints. The choice that corresponds to this answer is (C) 1,000.

Question 5

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 1,600 old jokes for which he paid 6 dollars each.If the wage rate for cartoonists is 5 dollars, then the total cost of producing 108 comics books is

A)15,007.50 dollars.
B)5,002.50 dollars.
C)10,113 dollars.
D)10,005 dollars.
E)2,501.25 dollars.

Accepted Answer

The answer of Touchie MacFeelie's production function is 0.1J^1/2 L^3/4,...

Question 6

if Mr.Dent Carr's total costs were 2s² + 50s + 75, then if he repairs 25 cars, his average variable costs will be A)$150. B)$200. C)$103. D)$100. E)$75.

Accepted Answer

The total cost function is 2s^2 + 50s + 75. The variable cost is 2s^2 + 50s. For 25 cars, the variable cost is 2(25)^2 + 50(25) = 1250 + 1250 = 2500. The average variable cost is 2500/25 = 100.

Question 7

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

A)at least 1,410 cars per year.
B)no more than 700 cars per year.
C)no more than 1,400 cars per year.
D)at least 1,400 cars per year.
E)at least 700 cars per year.

Accepted Answer

The high-quality hydraulic car smasher would be worthwhile if Rex planned to dispose of at least 400 cars per year. This is because the cost of owning the high-quality smasher is $300 per year, and the marginal cost of disposing of a car with the high-quality smasher is $.75 per car. Therefore, the total cost of disposing of 400 cars with the high-quality smasher would be $300 + (400 x $.75) = $600. The cost of disposing of 400 cars with the low-quality smasher would be $200 + (400 x $1) = $600. Therefore, the high-quality smasher would be worthwhile if Rex planned to dispose of at least 400 cars per year.

Question 8

Mary Magnolia has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 1,000 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $5 per unit, how many bouquets per month should she sell in the short run?

A)2,500
B)500
C)1,000
D)3,750
E)2,750

Accepted Answer

Given the variable costs formula y²/F, and with F = 1,000 square feet, the price per bouquet being $5, the formula simplifies to how many bouquets (y) she needs to sell to cover her variable costs. Since the formula and the question do not provide specific details on costs or revenue beyond the price per bouquet, we cannot calculate an exact number of bouquets needed to cover costs or achieve profitability. However, choice A (2,500) is selected based on the information provided, which is insufficient for a precise calculation, indicating a misunderstanding in the question's interpretation.

Question 9

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

A)at least 1,410 cars per year.
B)no more than 700 cars per year.
C)no more than 1,400 cars per year.
D)at least 1,400 cars per year.
E)at least 700 cars per year.

at least 1,400 cars per year.

Accepted Answer

To determine the break-even point for the high-quality smasher, compare its total cost to the next best alternative. The next best alternative is the low-quality smasher with a total cost of $200 + $1 per car. The high-quality smasher's total cost is $650 + $0.75 per car. Set the total costs equal to solve for the number of cars (x):$200 + $1x = $650 + $0.75xSolving for x gives:$0.25x = $450x = 1800 carsThus, Rex should buy the high-quality smasher if he plans to dispose of at least 1,800 cars per year.

Question 10

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 900 old jokes for which he paid 4 dollars each.If the wage rate for cartoonists is 6 dollars, then the total cost of producing 24 comics books is

A)3,720 dollars.
B)3,696 dollars.
C)1,848 dollars.
D)5,544 dollars.
E)924 dollars.

Accepted Answer

To find the total cost of production, we need to find the total cost of inputs (old jokes and labor). Cost of old jokes: Touchie has 900 old jokes and each joke cost him 4 dollars. So, the total cost of old jokes is: 900 x 4 = 3600 dollars Cost of labor: Touchie needs to produce 24 comics books, and the production function gives us the amount of labor required per book. We can find the total labor needed as follows: LS = 0.1J^1/2U + L^3/4 LS = 0.1(0)^1/2U + L^3/4 (since J=0 for the first comic book) LS = L^3/4 For the first comic book, Touchie will need L^3/4 hours of labor. For the second book, he will again need L^3/4 hours of labor, and so on. So, for 24 comic books: Total labor = 24 x L^3/4 Plugging in the values, we get: Total labor = 24 x (0.1 x 0 x (1)^(1/2) x (1)^(1/2) x (0)^(1) + (1)^(3/4) x (1)^(1/4) x (6)^(3/4) x (0)^(1)) Total labor = 24 x (1.5) = 36 hours The total cost of labor is therefore: Total labor cost = 36 x 6 = 216 dollars So, the total cost of production is: Total cost = Cost of old jokes + Total labor cost Total cost = 3600 + 216 = 3816 dollars However, we need to be careful because the question asks for the total cost of producing 24 comics books, not just one. So, we need to divide the total cost by 24 to get the cost per book: Cost per book = Total cost / Number of books Cost per book = 3816 / 24 = 159 dollars So, the correct answer is B) 3696 dollars.

Question 11

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

A)at least 1,410 cars per year.
B)no more than 700 cars per year.
C)no more than 1,400 cars per year.
D)at least 1,400 cars per year.
E)at least 700 cars per year.

at least 1,400 cars per year.

Accepted Answer

The answer of Rex Carr could pay $10 for a...

Question 12

if Mr.Dent Carr's total costs were 4s² + 40s + 20, then if he repairs 10 cars, his average variable costs will be A)$120. B)$82. C)$160. D)$80. E)$60.

Accepted Answer

The answer of if Mr.Dent Carr's total costs were 4s²...

Question 13

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

A)at least 1,410 cars per year.
B)no more than 700 cars per year.
C)no more than 1,400 cars per year.
D)at least 1,400 cars per year.
E)at least 700 cars per year.

at least 1,400 cars per year.

Accepted Answer

The answer of  Rex Carr could pay $10 for...

Question 14

if Mr.Dent Carr's total costs were 5s² + 50s + 20, then if he repairs 10 cars, his average variable costs will be A)$100. B)$102. C)$150. D)$200. E)$75.

Accepted Answer

The answer of if Mr.Dent Carr's total costs were 5s²...

Question 15

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 400 old jokes for which he paid 4 dollars each.If the wage rate for cartoonists is 3 dollars, then the total cost of producing 128 comics books is

A)2,368 dollars.
B)1,184 dollars.
C)3,552 dollars.
D)2,496 dollars.
E)592 dollars.

Accepted Answer

The answer of Touchie MacFeelie's production function is 0.1J^1/2 L^3/4,...

Question 16

if Mr.Dent Carr's total costs were 2s² + 20s + 40, then if he repairs 10 cars, his average variable costs will be A)$44. B)$80. C)$40. D)$60. E)$30.

Accepted Answer

The answer of if Mr.Dent Carr's total costs were 2s²...

Question 17

Touchie MacFeelie's production function is 0.1J^1/2 L^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 1,600 old jokes for which he paid 3 dollars each.If the wage rate for cartoonists is 2 dollars, then the total cost of producing 108 comics books is

A)2,481 dollars.
B)5,070 dollars.
C)4,962 dollars.
D)7,443 dollars.
E)1,240.50 dollars.

Accepted Answer

The answer of Touchie MacFeelie's production function is 0.1J^1/2 L^3/4,...

Question 18

Mary Magnolia has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 1,000 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $5 per unit, how many bouquets per month should she sell in the short run?

A)2,500
B)500
C)1,000
D)3,750
E)2,750

Accepted Answer

The answer of Mary Magnolia has variable costs equal to...

Question 19

Mary Magnolia has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 400 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $5 per unit, how many bouquets per month should she sell in the short run?

A)200
B)1,500
C)1,000
D)400
E)1,100

Accepted Answer

The answer of Mary Magnolia has variable costs equal to...

Question 20

Mary Magnolia has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 1,000 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $5 per unit, how many bouquets per month should she sell in the short run?

A)2,500
B)500
C)1,000
D)3,750
E)2,750

Accepted Answer

The answer of Mary Magnolia  has variable costs equal...

Question 21

Recall that Touchie McFeelie's production function for comics books is 0.1J^1/2 L^3/4.Suppose that Touchie can vary both jokes and cartoonists' labor.If old jokes cost $1 each and cartoonists' labor costs $3 per hour, then the cheapest way to produce comics books requires using jokes and labor in the ratio

A)J/L = 4.
B)J/L = 2/3.
C)J/L = 3.
D)J/L = 1.
E)J/L = 2.

Accepted Answer

The answer of Recall that Touchie McFeelie's production function for...

Question 22

Recall that Touchie McFeelie's production function for comics books is 0.1J^1/2 L^3/4.Suppose that Touchie can vary both jokes and cartoonists' labor.If old jokes cost $1 each and cartoonists' labor costs $3 per hour, then the cheapest way to produce comics books requires using jokes and labor in the ratio

A)J/L = 4.
B)J/L = 2/3.
C)J/L = 3.
D)J/L = 1.
E)J/L = 2.

Accepted Answer

The answer of Recall that Touchie McFeelie's production function for...

Question 23

Recall that Touchie McFeelie's production function for comics books is 0.1J^1/2 L^3/4.Suppose that Touchie can vary both jokes and cartoonists' labor.If old jokes cost $4 each and cartoonists' labor costs $24 per hour, then the cheapest way to produce comics books requires using jokes and labor in the ratio

A)J/L = 6.
B)J/L = 8.
C)J/L = 2/3.
D)J/L = 2.
E)J/L = 4.

Accepted Answer

The answer of Recall that Touchie McFeelie's production function for...

Question 24

Recall that Touchie McFeelie's production function for comics books is 0.1J^1/2 L^3/4.Suppose that Touchie can vary both jokes and cartoonists' labor.If old jokes cost $4 each and cartoonists' labor costs $24 per hour, then the cheapest way to produce comics books requires using jokes and labor in the ratio

A)J/L = 6.
B)J/L = 8.
C)J/L = 2/3.
D)J/L = 2.
E)J/L = 4.

Accepted Answer

The answer of Recall that Touchie McFeelie's production function for...

Question 25

Recall that Touchie McFeelie's production function for comics books is 0.1J^1/2 L^3/4.Suppose that Touchie can vary both jokes and cartoonists' labor.If old jokes cost $4 each and cartoonists' labor costs $24 per hour, then the cheapest way to produce comics books requires using jokes and labor in the ratio

A)J/L = 6.
B)J/L = 8.
C)J/L = 2/3.
D)J/L = 2.
E)J/L = 4.

Accepted Answer

The answer of Recall that Touchie McFeelie's production function for...

Deck 22: Extension: A: Cost Curves