Sunday
April 19, 2015

Homework Help: Microeconomics

Posted by Anonymous on Wednesday, October 14, 2009 at 3:49pm.

Check and correct my answers please. Thank you.

Trunks owns a junk yard. He can use one of two methods to destroy cars. The first method involves purchasing a hydraulic car smasher that costs $200/year to own and then spending $1 for every car smashed into oblivion. The second method involves purchasing a shovel that will last one year and costs $10 and paying his brother, Scoop, to bury the cars at a cost of $5 each.

a) What are the cost functions for the two methods, where y is output per year?

b) What is the AC(y) and MC(y) of the first method and second method?

c) If Trunks wrecks 40 cars per year, which method should he use? If he wrecks 50 cars per year, which method should he use? What is the smallest number of cars per year for which it would be cost effective for him to buy hydraulic smasher (round to the nearest whole number)?


------------
my answers:



a)
c1(y) = y + 200
c2(y) = 5y + 10

b)
First Method:
AC(y)=1+200/y
MC(y)=$1 (I actually don’t know how to get this…just guessed the answer…)

Second method:
AC(y)=5+10/y
MC(y)=$5 (I actually don’t know how to get this…just guessed the answer…)

c)
Method 2
Method 1
25 cars per year (I actually don’t know how to get this…just guessed the answer…)

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

MircroEconomics - Production & Cost - Please check my answers if they are ...
Physics check my answers! - Check my answers thanks! 1. A diesel automobile ...
Science - A repair shop tested two methods(a & B) of replacing a broken roller. ...
Quanitive Methods - A car rental company has $540,000 to purchase up to 25 new ...
physics - The figure below shows a train with 3 compartments only. Each of the ...
Physics - Two cars are moving. The first car has twice the mass of the second ...
Physics . pls help me :) - Two train cars are on a straight, horizontal track. ...
physics - A short train (an engine plus four cars) is accelerating at 1.10 . The...
math***CHECK ANSWERS*** - PLEASE CHECK MY ANSWERS! THANKS please help me and ...
physics - Please decide which of the following statements for car collisions are...

Members