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Q: Which of the following is not a variable cost at the sandwich shop? O Cost of labor
A: We have to find which is not a variable cost at the sandwich shop.
Q: (d) What is the variable cost? ta What is the fixed cost?
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- Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?Are there fixed costs in the lung-run? Explain briefly.How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
- What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
- If a firm produces nothing, which of the following costs will be zero? Select one: a. variable cost O b. fixed cost c. opportunity cost O d. total costWhich of the following does not change with the level of output? O Marginal cost O Total fixed cost O Total variable cost Average fixed costThe formula for total fixed cost is Select one O A TFC TVC-TC O B. TFC-TC/TVC C TFC=TC-TVC. O D TFC-TC TVC
- If a firm will produce an additional unit of good or services, determine what will happen to their costs? a. The total cost will decrease O b. The total cost will be the same O . The total cost will be equal O d. The total cost will increaseUse the information in the graph to find the values for the fol- lowing costs at an output level of 500. a. Total fixed cost b. Total variable cost c. Total cost d. Marginal costWhich of the following is not a variable cost at the sandwich shop? O Cost of labor O Cost of delivery O Cost of rent O Cost of tomatoes