13. A graph is given below for the cost and the revenue functions. Assume that each (vertical and horizontal) square represents 5. (a) For which quantities does the company make a profit? 10 20 30 40 50 quantities (b) If the company is presently making 20 items, estimate marginal cost and marginal revenue. Should they increase production? (c) If the company is presently making 40 items, estimate marginal cost and marginal revenue. Should they increase production? (d) Estimate the fixed costs.

13. A graph is given below for the cost and the revenue functions. Assume that each (vertical and horizontal) square represents 5. (a) For which quantities does the company make a profit? 10 20 30 40 50 quantities (b) If the company is presently making 20 items, estimate marginal cost and marginal revenue. Should they increase production? (c) If the company is presently making 40 items, estimate marginal cost and marginal revenue. Should they increase production? (d) Estimate the fixed costs.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Similar questions

What are diminishing marginal returns as they relate to costs?
Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually. annual operating profit? A) -$10,000. B) $40,000. C) $70,000. D) $80,000.
A) ABC company produces 100 pendants per day. The total fixed cost for the plant is $500 and the total variables cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. B) calculate economic profit and accounting profit from the figures given below for ABC company 1) total revenue $500,000 2) wages and salaries $40,0000 3) forgone salary $80,000 4) interest paid $10,000 5) forgone rent $ 10,000 6) raw materials. $ 50,000 7) other payments $20,000 8 forgone interest $ 7000
1. Direct laborrate: $15.00perhour Production material: $375 per 100 items Factory overhead: 125% of direct labor Packing costs: 75%ofdirectlabor Desiredproﬁt: 20%oftotalmanufacturing cost use the above information to answer how many units must be sold to achieve a proﬁt of $25,000? [Note that the units sold must account for total production costs (direct and overhead) plus desired proﬁt. 2. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Show work and Select the closest answer. a) $4,618,000 b) $10,623,000 c) $14,342,000 d) $ 14,891,000
3. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are $12,500 per research project.a. If the revenue per project is $30,000, what is the breakeven number of projects of this lab in a year to sustain its operations?b. Currently, the lab works on 20 projects a year. What is their profit at this level?c. If variable costs increase to $13,000 per research project, what is the new BEP? By how much will their profit increase or decrease?
(Figure: Costs of Oil Production) Refer to the figure. Assuming that price equals marginal cost, the total cost of producing eight barrels of oil is: It cannot be determined from the information given. $400. $240. $60.
ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. (3 marks) • Total revenue $ 500,000 • Wages and salaries $ 40,0000 • Forgone salary $ 80,000 • Interest paid $ 10,000 • Forgone rent $ 10,000 • Raw materials $ 50,000 • Other payments $ 20,000 • Forgone interest $ 7,000
5d What is the relationship between accounting profit and economic profit? Which is relevant for a firm’s decision to continue production and why? Give examples as to what may cause a divergence between accounting and economic profit
Please help 1- Joes explicit costs are ….. ' 2- Joes implicit costs are…. 3- Joes economic profit in the first year is ….. dollars. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.
A manufacturer of cassette tapes expects a fixed cost of $55,000. It plans to work onthe margin of forty-six percent of retail, and to incur other variable costs of $0.4 per cassette.The selling price per cassette is $6 dollar.i. Find the revenue, cost, and profit functions using q for a number of cassettes.ii. How much profit will be earned if 25000 cassettes are produced?iii. Construct the break-even chart. Label the cost & revenue lines, the fixed cost line, and the break-even point.
Let's assume that a firm's total weekly costs are as follows: 1. Salaries = $5000. 2. Supplies = $1000. 3. Rent = $600. In addition, the owners have invested $30,000 of their own money into the business. This could have earned them interest of $100 per week if they had chosen to put it into a bank instead of investing it into their business. If the firm has weekly revenue of $20,000, the firm's accounting profit is ____________, and the economic profit is _____________. Loss of $18,987; profit of $5,690 Loss of $16,600; loss of $16,700. Loss of $16,700; loss of $16,600. $13,300; $13,400. $13,400; $13,300.
(Figure: Costs of Oil Production) Refer to the figure. Assuming that price equals marginal cost, the profit of producing eight barrels of oil is: $160. $400 It cannot be determined from the information given. $240.