Joe’s Economics Assingment Help With Solution

Suppose that the Celis Sweets Company has a fixed proportions production function that requires it to use two sweet presses and one worker to produce 1000 sweets per hour.

1. Explain why the cost per hour of producing 1000 sweets is 2v + w ( where v is the hourly rent for sweets presses and w is the hourly wage).

2. Assume Celis can produce any number of sweets they want using this technology. Explain why the cost function in this case would be T C = q(2v + w), where q is output of sweets per hour, measured in thousands of sweets.

3. What is the average and marginal cost of sweets production ( again, measure output in thousands of sweets)?

4. Graph the average and marginal cost curves for sweets assuming v = 3, w = 5.

5. Now graph these curves for v = 6, w = 5. Explain why these curves have shifted.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

Trapper Joe, the fur trader, has found that his production function in acquiring pelts is given by q = √
H where q = the number of pelts acquired in a day, and H = the number of hours Joe’s employees spend hunting and trapping in one day. Joe pays his employees $8 an hour.

1. Calculate Joe’s total and average cost curves (as a function of q).

2. What is Joe’s total cost for the day if he acquires four pelts? Six pelts? Eight pelts? What is Joe’s average cost per pelt for the day if he acquires four pelts? Six pelts? Eight pelts?

3. Graph the cost curves from part a and indicate the points from part b. Explain why the cost curves have the shape they do.

Returning to the sweets producer problem, let’s look at the possibility that producing these delectable treats does not necessarily experience constant returns to scale.

1. In the problem, you showed that the cost function for sweets was given by T C = q(2v + w) where q is output of sweets (in thousands), v is the rental rate for sweet presses, and w is the hourly wage. Explain why this cost function illustrates constant returns to scale.

2. Suppose instead that the sweets cost function is given by T C = (2v + w)√q. Explain why this function illustrates increasing returns to scale. What does the graph of the total cost curve for this function look like? What do the implied average and marginal cost curves look like?

3. Suppose now that the sweets cost function is TC = (2v+w)q2. Explain why this function exhibits decreasing returns to scale. Illustrate this by graphing the total, average, and marginal cost curves for this function.

4. More generally, suppose TC = (2v + w)qs. Explain how any desired value for returns to scale can be incorporated into this function by changing the parameter s.

Product Code :Eco12

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary