Microeconomics
posted by Anonymous .
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…)

a) I agree
b1) I agree
b2) I agree
(To smash 1 additional car cost $1 in method1 and $5 in method2)
c1) I agree
c2) I agree
c3) I disagree. Set c1=c2 and solve for y. That is y+200=5y+10 (then round up)
Respond to this Question
Similar Questions

Physics check my answers!
Check my answers thanks! 1. A diesel automobile outputs ThermE, RadE, ElectE and KinE from an input of a. NuclE b. ChemE c. ElectE d. KinE I think its b Two race cars cross the finish line at exactly the same time but the first car … 
PreCalculus
A car manufacturing company (the Company) can produce a car for $3000.00 and a truck for $5000.00. Suppose "C" cars and "T" trucks are sold to the dealer at markups, respectively, of 20 and 30 percent. If the Company made a profit … 
PreCalculus
A car manufacturing company (the Company) can produce a car for $3000.00 and a truck for $5000.00. Suppose "C" cars and "T" trucks are sold to the dealer at markups, respectively, of 20 and 30 percent. If the Company made a profit … 
MircroEconomics  Production & Cost
Please check my answers if they are correct! If not, please make corrections. Thank you! Bob, owner of Bob’s Auto, sells cars. The number of car sales is represented by y. Bob buys autos at a price of A each and has no other costs. … 
Science
A repair shop tested two methods(a & B) of replacing a broken roller. In testing method A, these times in minutes were measured (5 trials), 2,4,9,3,2. In testing methods B, these times in minutes were measured (6 trials), 3,7,5,8,4,3. … 
statistics
In this question, use Excel functions rather than Normal distribution tables. The number of new cars sold by "Ma's New Car Factory" in a financial year can be approximated by a normal distribution with a mean of 125,000 cars and a … 
Human Resources
Which of the following is a correct statement about dejobbing? 
Technology
How can you find out which study method is best for you? 
Computer Science
You want to buy a new car, and you are thinking about two alternatives, car A and car B. You like both cars, and you are considering keeping whichever one you buy for many years to come. As a result, you want to evaluate the total … 
Computer Science
You want to buy a new car, and you are thinking about two alternatives, car A and car B. You like both cars, and you are considering keeping whichever one you buy for many years to come. As a result, you want to evaluate the total …