2. (a) If a production function exhibits decreasing returns to scale and the quantity of all inputs is halved, what happens to output? (b) If a production function exhibits decreasing returns to scale and the scale of output is halved, what happens to the average cost per unit produced?
Q: Question 14 Becky is a corporate account manager at a company that sells athletic equipment to other…
A: Becky receives a monthly salary of $2000 plus commission on any sales that she makes. It means…
Q: Mr. Diddy grows and sells Pineapple. His company is named "Do it Diddy Way!!" Suppose that to…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Branch B: One of the investors wanted to buy a factory for the production of electrical…
A: japan korea tfc 1000000 800000 tvc 500000 700000 tc 1500000 1500000 ac 15 15
Q: 1. Definition of economic costs Larry lives in New York City and runs a business that sells boats.…
A: Economic cost is the sum of all losses of any goods with a monetary value attached to them by any…
Q: The expenses budgeted for production of 1,000 units in a factory are furnished below:…
A: Total selling expense = 130 x 1,000 = 130,000 Fixed selling expense = 130,000 x 20% = 26,000…
Q: 1. Definition of economic costs Lorenzo lives in Denver and runs a business that sells guitars. In…
A: Explicit cost is a cost that is actually incurred and paid in cash. Implicit cost is the benefit…
Q: Production capability is now only 23000 gallons at most. The squeezer cannot be fixed and IceLess…
A: Total fixed cost = 65600.30 Total variable cost = 3.30 Total Earning = $94400 above fixed costs =…
Q: (8) A machinery purchased for a project from local manufacturer who is a big exporter of that…
A: The cost components break down the costs of a material across the entire structure of production…
Q: 2. Definition of economic costs Lorenzo lives in Detroit and runs a business that sells guitars. In…
A: Implicit cost refers to foregone income that could have been earned if resources were invested…
Q: COSTS REVENUES Quantity Total Produced Cost Marginal Quantity Cost Total Marginal Demanded Price…
A: Total revenue (TR) is calculated by the formula:- TR = P × Q Where as, P = PRICE Q = QUANTITY
Q: Copy and paste, or type, the following into cells A1:D5 of an Excel spreadsheet: Input data fixed…
A: The fixed cost is the cost which do not change with the change in the output level, that is, fixed…
Q: Y=X+4X2-0.2X3 (Y=is wheat fields in kgs and X=amount of ferterlizer applied) Derive MPP and APP of…
A: Y = x + 4x2 -0.2x3. (a) MPP = dY/dx = 1 + 8x - 0.6x2 APP = Y/x = 1 + 4x -0.2x2 (1) MPP is maximum…
Q: 1. Definition of economic costs Eric lives in San Francisco and runs a business that sells pianos.…
A: Definition of explicit cost : The costs which are directly incurred on the factors of production or…
Q: Number of variable inputs Total output Marginal product Average product 3 - 18 30 4 - 20 - 5 130 - -…
A: There is relation between average product, total product and marginal product. All the three are…
Q: A motor vehicle assembly plant requires the use of both capital and labour. The Telsa manufacturing…
A: Diminishing return states that as the number of an input increases than the total product will…
Q: w of diminishing returns
A: Explanation: It primarily associates the rise within the variety of labor hours with the subsequent…
Q: 11. Determine the break-even point in terms of number of units produced per month using the…
A:
Q: 12 Richmond, Inc. uses absorption costing for external reporting and variable costing for its…
A: NOI decides the income and benefit of contributed land property subsequent to deducting important…
Q: Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0…
A: A firm is an entity that plays the role of a supply-side participant in the market. A firm…
Q: Consider the input output table below Table (Inter) final Total (Agric) (Manuf) (Mining)demand…
A: Given information
Q: 7. An executive at a manufacturing plant that produces personal computers is attempting to decide…
A: Answer - "Thank you for submitting question But, we are authorized to solve one question at a time…
Q: NO 2 Solve and show the complete solution.
A: Location factor rating is the simple methodology of identifying and selecting the location…
Q: Hubert lives in Detroit and runs a business that sells boats. In an average year, he receives…
A: Implicit cost and explicit cost are shown in below table.
Q: a) A highly skilled worker can use two scissors at once in his left and right hands with a…
A: Given: Q1 = 500 Q2=1500
Q: Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0…
A: In a market, producers have to face various constraints such as cost minimizing or…
Q: 50. If all inputs are trebled and the resultant output is doubled, this is a case of
A: answer is given below
Q: - Which one of these will continuously increase as more products are produced? a. Average fixed…
A: In the short run, total costs can be either fixed costs or variable costs. In long run, there is no…
Q: For which type of company is additional growth likely to create more value: a high-ROIC company in a…
A: Additional growth in a high ROIC company in a mature market is less likely to create more values…
Q: 1-18 Katherine D'Ann is planning to finance her college education by selling programs at the…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: 6. A company produces x units of product A and y units of product B (both in hundreds per month).…
A: We are given we can find partial derivative with respect to x
Q: Mr. Diddy grows and sells Pineapple. His company is named "Do it Diddy Way!!" Suppose that to…
A: Two inputs required to produce pineapple given as i. Land(Fixed) ii. Workers (variable) Land as…
Q: 5. Consider the accompanying breakeven graph for an investment, answer the following questions. a)…
A: Since you have provided multiple subpart question, we will solve the first three subpart for you. If…
Q: 1. Use the high-low method to estimate the fixed and variable portion of overhead costs based on…
A: Total cost (TC) = F + vQ where F: Fixed cost, v: Overhead cost per hour & Q: Number of machine…
Q: 1. Define each of the following terms: a. economies of scope experience good internal rate of return…
A: a. Economies of scope - Economies of scope states that when the production of one good reduces the…
Q: Required: 1. Discuss the following statement. Include the core elements of sustainability in your…
A: Sustainability is a three-dimensional societal aim that includes environmental, economic, and social…
Q: 2 What problems might be encountered in determining this solution in practical terms?
A: 2) This optimal solution of Isoquant and Isocost is tedious in real life. Hospital will have to…
Q: 3. Suppose you start a new business by fixing car paint scratches. The table following shows all…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: $1 and Px. $2. How 4-11. Consider the production function Y X}" X". Px. many units of X, and X,…
A: A production function translates a set of inputs into a collection of outputs.In other words, it…
Q: 5. Consider the accompanying breakeven graph for an investment, answer the following questions. a)…
A: Since you have posted multi subparts question. So as per answering guideline, we will solve first 3…
Q: 2.The Secretary of the Treasury was authorized by Congress to mint and sell a stated number of…
A: “Hello, thank you for the question. Since there are multiple questions posted, we will answer the…
Q: 2. As a general rule, when accountants calculate profit they account for explicit costs but usually…
A: There are broadly two kinds of profits. Accounting profit and Economic profit. Profit as we know is…
Q: 6. A firm has estimated that the fixed costs of operations for a new product at $2,000,000 per year.…
A: Answer: Given, Fixed cost (FC)=$2,000,000Variable cost per unit=$250 per unitPrice of the product…
Q: A graph represented by a straight line parallel to the output of the X-AXIS is an image of which…
A: The cost of production is classified on the basis of the factors of production. The total cost is…
Q: Please show the solution to its corresponding answer stated in the problem.
A: To judge whether a method of production is relatively economical or not we find the productivity of…
Q: 3(a) The cost of manufacturing motor cycles (per day) is related to number to number of motor cycles…
A: Given Total cost in SAR: TC=x33-200x2-50000x ... (1) We have to find a cost-minimizing…
Q: a thousand of pesos (P1.000.00). In economic perspective, would you contend th he only cost…
A: Disclaimer: Since you have put a multi-part question, we are providing you with the solutions to the…
Q: Required 1-a. Calculate the contribution margin for 6,000 units for both the current and special…
A: Variable cost is the production cost that will change with the change of production level of the…
Q: Total revenue of producing 30 units of output from the above table is: Select one: a. $180 b. $435…
A: Total Cost : It is the summation of total variable cost and total fixed cost. It is incurred by the…
Topic: : Cost function, economies of scale, technological change
Step by step
Solved in 2 steps
- 3. What name is given to expenditures that must be made before production starts and that do not change regardless of the level of production? A. Marginal costs B. Diseconomies of scale C. Variable costs D. Fixed costs I(8)A production function: (a) Shows the cost of producing any level of output. (b) Is a technological relationship between factors of production and output. (c) Expresses the least-cost method of producing a given level of output. (d) Expresses our ability to produce various combinations of goods, using all of our resources.1. Match the following terms to their descriptions - Economies of scale - Constant returns to scale - Diseconomies of scale - a curve which represents a company's ability to adjust it's methods and costs of productivity over time, optimized according to quantity produced ATTACHED FILE ARE THE OPTIONS
- (6) If marginal product is greater than average product (a) total product must be increasing. (b) marginal product must be decreasing. (c) marginal product must be increasing. (d) average product may be increasing or decreasing.q4- Total cost increases from $500 to $600 when output increases from 20 to 30 units. Fixed costs are $200. Which of the following is true? Select one: a. The production cost per unit is increasing b. Average fixed costs rise c. Marginal cost is equal to fixed cost d. Average total cost falls5. An entrepreneur has costs for storing and shipping materials for his manufacturing process given by the function C (k) = 100 (100 + 9k + 144 / k) when 1 ≤ k ≤ 100, where C (k) is the cost total storage and transportation for 100 days of operation. If a load of k tons of material moves every k days, for what values of k does C (k) have a minimum value?
- Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?1. Definition of economic costs Yakov lives in San Diego and operates a small company selling bikes. On average, he receives $694,000 per year from selling bikes. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $392,000. He also pays several utility companies, as well as his employees wages totaling $289,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $2,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Yakov does not operate the bike business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $2,000 per year rate. There are no other costs faced by Yakov in running this bike company. Identify each of Yakov’s costs in the following table as either an implicit cost or an explicit cost of selling bikes. Implicit Cost Explicit Cost…10 . If marginal product is less than average product, then average product is : A. decreasing b - fixed C- None of the above d - growing
- 26. The cost that vary accordingly to the volume of output is _____________. a. Fixed cost b. Both fixed and variable costs c. All the options d. Variable costWhat production function is applicable for the 3 stages of production?18) The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $150,000 to develop and only $0.50 per unit to deliver to each cell phone customer. Instructions: Round your answers to 2 decimal places. a. What will be the per-unit cost of the application if it sells 100 units? b. What will be the per-unit cost of the application if it sells 1,000 units? c. What will be the per-unit cost of the application if it sells 1 million units?