Question
According to the information below, which of the following is (are) true?
Units of variable input (I)
Units of output (Q)
1,000
ТC
TVC
200
$30,000
$25,000
TFC $55,000
b. AVC $30
The price of the variable input is $125/unit
а.
с.
d.
a. and c
expand button
Transcribed Image Text:According to the information below, which of the following is (are) true? Units of variable input (I) Units of output (Q) 1,000 ТC TVC 200 $30,000 $25,000 TFC $55,000 b. AVC $30 The price of the variable input is $125/unit а. с. d. a. and c
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Not helpful? See similar books
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Making Economics Decisions. 1QTC
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20…

A: Click to see the answer

Q: Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20…

A: Capital and labor are the two inputs used in the production of goods and services. These are also…

Q: Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $4.00 in…

A: Fixed Cost is constant at all units of output produced.  Vraiable Cost changes as the output…

Q: While the technology level and the amount of other inputs are constant, as the amount of bit input…

A: Factors are classified into two types: variable inputs and the fixed inputs. Variable inputs vary…

Q: The next 3 questions deal with the following situation. Jennifer has a home business selling women's…

A: Accounting profits take into account only the explicit cost into consideration and not the…

Q: A firm is using 7 units of labor and 100 units of capital to produce 1000 units of goods. At these…

A: The problem of reducing costs is, in mathematics, a problem. In limited optimization. The firm wants…

Q: the fixed input is the two hectare of land and the variable input is fertilizer explain how the…

A: The law of diminishing returns state that increasing a factor of production does not always lead to…

Q: Fill in the gaps in the table below. (Enter your responses rounded to two decimal places.) Quantity…

A: Step 1:The general formulas to determine the total output (TP), the marginal production cost of…

Q: Q. Table 3 above shows how output varies with only one variable input used in production. If the…

A: Here, the cost of one unit of labor is $500 To get the approximate marginal cost of the 230th unit…

Q: t Suppose that the monthly​ cost, in​ dollars, of producing x chairs is…

A: Total cost measures the overall cost of production incurred in the process to produce output.

Q: A farmer uses K units of machinery and L hours of labor to produce C tons of corn, with the…

A: An rational optimizing firm produces at the point where the marginal rate of technical substitution…

Q: A firm is using 500 units of capital and 20O units of labor to produce 10,000 units of output.…

A: The Production function is a combination of Labor and capital f(K,L) = wL + rK where w= Price of…

Q: When my wife makes French bread for breakfast, she asks me to provide her with mixing (and) shake…

A: Answer:  option b (y=x1+x23) Explanation: Here the inputs used for shake services i.e. mixer or…

Q: Which of the following relationship is correct? When marginal product (MP) starts to increase;…

A: MP is the marginal product which is the additional product produced with an additional unit of…

Q: Assume that you have the following production function and input prices in the long run: 2 2 3 2 3 3…

A: Given: The production function and input prices are: W = 8 r = 4 Firm input bundle is (8, 10) To…

Q: Prunella raises peaches where Lis the number of units of labor she uses and T is the number of units…

A: An isocost line is a curve that depicts numerous input combinations that cost the same total amount.…

Q: Suppose a pizza parlor has the following productions cost $4.00 in labor per pizza $2.00 in…

A: Profit is the key motive of firms operating in a market. Profit refers to the difference between the…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: Slope of isocost line is the negative price ratio between the two goods.

Q: b) The MTA uses equipment (K), labor (L) and supplies (S) to produce public transportation services…

A: The MTA uses inputs that are equipment (K), labour (L) and supplies (S) to produce public…

Q: If the fixed input is the two hectare of land and the variable input is fertilizer explain how the…

A: In the short run some inputs are fixed and some are variable. In this case land is fixed input and…

Q: If the fixed input is the two hectare of land and the variable input is fertilizer explain how the…

A: The law of diminishing marginal utility states that when an individual absorbs an object or a good,…

Q: Šuppose that a producer is faced with input combinations that yield 500 units. Assume that capital…

A: Optimal input combination is where Isocost line is tangent to Isoquant curve.

Q: C = 0.25q3 - 4q2 + 75q + F. The equation for average cost (AC) is: AC = (Properly format your…

A: A cost function is a formula used to predict the cost that will be experienced at a certain activity…

Q: A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much…

A: Given: Q = F(K,L) = min {6K,2L} K=2, L=3 Therefore, Q= min(6*2,2*3) Q=min (12,6) Therefore, out of…

Q: When costs are at a minimum, a)      the ratio of the MPL/MPK < PL/PK. b)     MPL = MPK. c)…

A: The cost are the expenditures which are incurred by the firm for producing the goods and services.…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: The total cost incurred by firms includes fixed costs and variable costs. Fixed costs are the costs…

Q: The additional cost of producing one more unit of output is calicu

A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: Capital: Capital is a term that refers to financial assets, including specific funds invested in…

Q: What is the cheapest way of producing 850 units of output if a firm operates with the production…

A: It is given that;

Q: 34. An iso-quant gives: S Combinations of output that can be produced using different levels of…

A: An Iso-quant is a position of points indicating all the efficient ways of mixing the different…

Q: Which statement is nottrue regarding the total variable cost curve? Select one A. It shows the…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0…

A: Click to see the answer

Q: Which of the following relationship is correct? O When marginal product (MP)starts to decrease,…

A: MP is the additional change in total output due to produce of one additional unit of output  MC is…

Q: Which of the following relationship is correct? When marginal cost (MC) starts to increase; average…

A: MC is the slope of TC(total cost). ATC is the per unit cost of product obtained by the ratio of TC…

Q: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: Which of the following is true?

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: Which of the following statements is false?     a. The long-run average-total-cost curve does not…

A: Total cost

Q: The marginal-cost (MC) curve and the average-variable-cost (AVC) curve are same images of the…

A: MC is the cost which is associated with the MP and the cost which is associated with the AP is the…

Q: A firm has the following production function: Q=f (L/K). It must pay $20 per hour of labor and rents…

A: Figure -1 shows the AVC, AFC, ATC and MC curve as follows:

Q: “Sunk cost is a fixed cost, but not in the long term.” Is this statement true or false? Explain!

A: In an economy, the cost is classified in different forms according to its effect on organizational…

Q: When a firm is using a technically efficient input combination, the firm is also producing in an…

A: False statement

Q: 1. What is the cost of the engine block? 2. What is the direct labor cost? 3. What is the total cost…

A: A part of the wage bill or payroll that can be specifically and consistently assigned to or…

Q: The table below indicates that the total variable cost of producing 150 units of the output is 200.…

A: Click to see the answer

Q: A firm’s only variable factor is labour and it produces a single product, X. It also has fixed…

A: Click to see the answer

Q: A firm’s only variable factor is labour and it produces a single product, X. It also has fixed…

A: Since you have asked multiple questions, we will solve the first three questions for you. If you…

Q: Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero.…

A: So  FC=$6 VC=7×$10       =$70

Q: The question is based on the following table, which provides information on the production of a…

A: It refers to the change in the total product when additional units of input are added. Marginal…

Q: Suppose Marcus produces chocolate with two inputs: factory and labour. The rent of the factory is…

A: Total cost refers to the cost of production of goods. It is calculated by the sum of fixed cost and…

Q: Indicate how each of the following would shift the (1) marginal- cost curve, (2)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: what is the Explicit and Implicit cost? find the accounting profit and the economic profit Suppose…

A: Explicit cost are those cost which is hired by producer from outside' Implicit cost also known as…

Knowledge Booster
Recommended textbooks for you
  • ENGR.ECONOMIC ANALYSIS
    Economics
    ISBN:9780190931919
    Author:NEWNAN
    Publisher:Oxford University Press
    Principles of Economics (12th Edition)
    Economics
    ISBN:9780134078779
    Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
    Publisher:PEARSON
    Engineering Economy (17th Edition)
    Economics
    ISBN:9780134870069
    Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
    Publisher:PEARSON
  • Principles of Economics (MindTap Course List)
    Economics
    ISBN:9781305585126
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Managerial Economics: A Problem Solving Approach
    Economics
    ISBN:9781337106665
    Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
    Publisher:Cengage Learning
    Managerial Economics & Business Strategy (Mcgraw-...
    Economics
    ISBN:9781259290619
    Author:Michael Baye, Jeff Prince
    Publisher:McGraw-Hill Education
  • ENGR.ECONOMIC ANALYSIS
    Economics
    ISBN:9780190931919
    Author:NEWNAN
    Publisher:Oxford University Press
    Principles of Economics (12th Edition)
    Economics
    ISBN:9780134078779
    Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
    Publisher:PEARSON
    Engineering Economy (17th Edition)
    Economics
    ISBN:9780134870069
    Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
    Publisher:PEARSON
    Principles of Economics (MindTap Course List)
    Economics
    ISBN:9781305585126
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Managerial Economics: A Problem Solving Approach
    Economics
    ISBN:9781337106665
    Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
    Publisher:Cengage Learning
    Managerial Economics & Business Strategy (Mcgraw-...
    Economics
    ISBN:9781259290619
    Author:Michael Baye, Jeff Prince
    Publisher:McGraw-Hill Education