a) What is theoretical relationship between Marginal Cost and Average cost b) If Total Revenue(TR)=5900Q – 10Q? and Total Cost(TC)= 2Q3 – 4Q2 + 140Q + 845. Determine the level of Profit at Q=30
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A: Average cost refers to the cost (AC) per unit. The average cost function can be derived as follows.
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- Explain which cost concept should be used in decision making and why. The explanation should include the following terms/relationships;accounting profit,economic profit as wellownership of factors of productionThe following cost-output data were obtained as part of a study of the economies of scale in operating a charter high school in Wisconsin: Students in Average Daily Attendance Midpoint of Values in Column A Operating Expenditure per Student Number of Schools in Sample (A) (B) (C) (D) 143-200 171 $531.9 6 201-300 250 480.8 12 301-400 350 446.3 19 401-500 450 426.9 17 501-600 550 442.6 14 601-700 650 413.1 13 701-900 800 374.3 9 901-1100 1000 433.2 6 1101-1600 1350 407.3 6 1601-2400 2000 405.6 7 Plot the data in columns B and C in an output (enrollment-) cost graph and sketch a smooth curve that would appear to provide a good fit to the data. Based on the scatter diagram in Question 1, what kind of mathematical relationship would appear to exist between enrollment and operating expenditures per student? In other words, do operating expenditures per student appear…Suppose a company has fixed costs of $300 and variable costs of 3/4 x+1460 dollars per unit, where x is thetotal number of units produced. Suppose further that the selling price of its product is 1500−1/4 x dollars per unit.(a) Find the break-even points.(b) Find the maximum revenue.(c) Form the profit function from the cost and revenue functions and find maximum profit.(d) What price will maximize the profit?
- How Break Even Analysis brings changes between fixed and variable cost relations that affect the profit level or turnovers (Graphically present the relationship between Revenue and Costs).Q. The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, high-school sporting events, and so on. The El Dorado Star faces the demand and cost schedules shown in the spreadsheet that follows: (1) (2) (3) Number of newspapers per day (Q) P Total cost per day (TC) 0 0 2,000 1,000 $1.50 2,100 2,000 $1.25 2,200 3,000 $1.00 2,360 4,000 $0.85 2,520 5,000 $0.75 2,700 6,000 $0.65 2,890 7,000 $0.50 3,090 8,000 $0.35 3,310 9,000 $0.10 3,550 a. Create a spreadsheet using Microsoft Excel (or any other spreadsheet software) that matches the one above by entering the output, price, and cost data given. b. Use the appropriate formulas to create three new columns (4, 5, and…Q. The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, high-school sporting events, and so on. The El Dorado Star faces the demand and cost schedules shown in the spreadsheet that follows: (1) (2) (3) Number of newspapers per day (Q) P Total cost per day (TC) 0 0 2,000 1,000 $1.50 2,100 2,000 $1.25 2,200 3,000 $1.00 2,360 4,000 $0.85 2,520 5,000 $0.75 2,700 6,000 $0.65 2,890 7,000 $0.50 3,090 8,000 $0.35 3,310 9,000 $0.10 3,550 a. Create a spreadsheet using Microsoft Excel (or any other spreadsheet software) that matches the one above by entering the output, price, and cost data given. b. Use the appropriate formulas to create three new columns (4, 5, and…
- If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output, what is marginal cost when 1 unit of output is produced? a. $0 b. $0.50 c. $1 d. $2Which of the ff statements are true about cost function a. It estimate the total cost of production given a specific budget b. It helps predict what the marginal cost would be to produce a product at different levels of output c. It allows management to evaluate how efficiently the production process was at the beginning of the operation period d. It helps manager understand the price behavior of the product A firm profit maximization point is where a. Total revenue Is greater than total cost b. Marginal revenue is equal to marginal cost c. Marginal revenue is greater than total cost d. Marginal cost is less than total costA. Will you invest a project that requires a $ 200,000 today and returns $50,000 at the end of the first year, $70,000 at the end of the second year and $100,000 at the end of the third year? Assume a discount rate of 5%. . B. An economist estimated that the total cost function of a single - product firm is TC= 125+5Q+3.5Q^2. Determine the average variable cost (AVC) of producing the 5 units. C. An economist estimated that the total cost function of a single -production firm is TC=125+5Q+3.5Q^2. Determine the marginal cost (MC) of producing the 5th unit? No derivative is required for this question
- How do you think the costs of teaching a commerce degree online would compare to the costs of a commerce degree taught on-campus at a university (i.e., face-to-face)? (question is related to economic profit/cost) e.g. involving Average Total Cost (ATC), etcA,B and C are SOLVED (3) A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 per day when producing 15 sinks. The company has a daily demand functionof q = 360 − p, where q is the number if laundry sinks demanded and p is te price ofa laundry sink.(a) If we assume that the total cost per day is linearly related to the amount of sinksproduced in a day, derive the total cost function of the company?(b) Find a function for the average cost of this company.(c) If production increases continuously, what is likely to be the average cost per sink?(d) How many laundry sinks will the company need to produce in order to maximise it′s profits? (e) What is the maximum profit?1. It costs $25,000 to build 30 refrigerators. It costs $30,000 to build 40 refrigerators. Assuming that the cost function is linear, find the cost function C(x) where x is the number of refrigerators built. If each refrigerator sells for $1500, find the revenue function, profit function, and break-even point.
