Assume that the total cost (fixed costs and variable costs) of producing 15,000 units of a good amounts to $300,000. If we add a "mark up" equal to 25% of cost, what would be the per-unit selling price of our good? Hint: this is a "cost-plus mark-up" scenario a.$20 b.$25 c.$12 d.$15

Assume that the total cost (fixed costs and variable costs) of producing 15,000 units of a good amounts to $300,000. If we add a "mark up" equal to 25% of cost, what would be the per-unit selling price of our good? Hint: this is a "cost-plus mark-up" scenario a.$20 b.$25 c.$12 d.$15

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: Assuming fixed costs are unavoidable in the short run, a perfectly competitive firm’s short run…

A: Given that fixed costs are unavoidable in the short run, it implies that a perfectly competitive…

Q: If the minimum wage is set above the equilibrium wage, the quantity of labor supplied by workers is…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…

A: First, we convert all values into an equivalent A value. Now, we will divide the A value by the…

Q: For a construction job, a contractor can haul rock by means of an ordinary 10 cubic yard dump truck,…

A: A cost is an expense incurred in the production or sale of a product or the preparation of an asset…

Q: . Predict the effect higher margins for your products would have on your competitors.

A: Higher margins on product is the desirable situation for any firm . Because it increases the…

Q: Suppose that each firm in a competitive industry has the following costs: Total Cost:…

A: Given, TC=50+12q2MC=dTCdq=2q2=q

Q: 4.5 You are given the following data concerning Freedonia, a legendary country: (1) Consumption…

A: At market equilibrium condition AD = AS where AE or AD = C+I and Y = C+S because income is used for…

Q: B) In a closed economy, the functions for consumption, investment, government expenditure and…

A: (i) Aggregate expenditure in closed economy is the sum of consumption, investment, government…

Q: If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: nanufacturer of hospital supplies has a uniform annual demand for 180,000 boxes of bandages. It…

A: Supply and demand represent the working of a market and the cooperation among providers and…

Q: Good X A B IC2 Good Y | The rotation of the budget line from red to blue depicts an increase in…

Q: Suppose the United States producers of rice convince the government to place a quota on (or to…

A: a. When there is a quota on the import of rice in the U.S. then it leads to a rise in the demand for…

Q: All of these are correct regarding types of economic evaluation EXCEPT: a. In Cost Benefit Analysis,…

A: In the economic evaluation, Cost-utility analysis is an analysis that is used to compare the cost…

Q: The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have…

A: Reserves refer to money on hand' in the world of business and finance, money that can be utilized…

Q: Average propensity Average propensity income ($) Consumption ($) Savings ($) to consume (APC) to…

A: All Blanks answers given below,

Q: discuss two cases of price elasticity of demand. use diagrams to motivate your answer.

A: The measure that depicts change in quantity being demanded with respect to changes in level of price…

Q: Your aunt gives piano lessons for $25 per hour. She also can grow tomatoes, which she can arrange…

A: Given: Piano lessons per hour=$25 Sale of tomatoes=$150

Q: A firm's marginal resource cost curve is O horizontal only if the firm is a price taker in the…

A: The marginal resource cost curve is used to explain the addition cost incurred in employing one more…

Q: Suppose bread is subsidized in a small Caribbean nation with a high percentage of citizens who live…

A: Subsidy to sellers reduces the cost of production. This encourages sellers to increase production.…

Q: The Consumer Price indux (CPI) lo currently published witlh a ruforenco value of 100 for the years…

A: Consumer price index (CPI) is the economic measure of analyzing the nature of inflation over a…

Q: Domestic Supply $10 $8 ALB $6 World P Domestic D 20 30 35 40 50 Q (millions of towels) Consider the…

A: When the government allows free trade the world price is $6. The imposition of tax will increase the…

Q: In each of the following markets find the market equilibrium. Calculate consumer surplus, producer…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question (question 9…

Q: How good is access to patient care in the U.S. health caresystem?

A: Introduction Among sophisticated industrialised countries, the United States' health-care system is…

Q: Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first payment…

A: The capacity of an asset to create returns that are then reinvested or stay invested with the…

Q: If a perfectly competitive firm is producing an output level where average variable cost is equal to…

A: "A profit maximizing firm in a perfectly competitive market will maximize profits at a point where…

Q: explains that specialization and trade makes people (and the world) better off. Please explain this…

A: Importance of specialization:- Specialization may improve productivity and give a company or nation…

Q: what are some other things that the Coke employees who sold the secret recipe to Pepsi should have…

A: Economist always make decisions under rationality. Because rationality gives them better choice and…

Q: A buyer or lessee can recover consequential damages for lost profit if Multiple Choice there is an…

A: Consequential damages are compensation awarded for an injury or loss suffered by one party as a…

Q: b. Suppose the tarmers spend $530,000 in thoir lobbying offorts but havo no offect on governmont…

A: The rent seeking activities tend to reduce the competition in the market and such activities create…

Q: . Saudi Post can sell envelopes for $0.2 per envelope. These envelopes are made using that cost…

A: We have, Machine cost = $100,000 i = 12% n = 10 year

Q: A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost…

A: Depreciation is a term used in economics to describe how much value an asset loses as a consequence…

Q: In the diagram below, if legislation allows Angela to be at point F, if Angela and Bruno can bargain…

A: Indifference Curve is the curve that shows a person’s utility level for different combinations of…

Q: Budget constraints provide a visual image the represents what a person can afford, given the price…

A: Budget constraint shows the amount of two goods with given set of income that the consumer can…

Q: Has labor benefited from or been hurt by unionization, improvements in technology and globalization?

A: Unionisation is the process of formation of group of individuals who represents the labourers and…

Q: [16] Operating in the short run with one fixed input and one variable input, the marginal product of…

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: Suppose that the demand for sweatshirts at the university bookstore is given by: P = 40 – 0.2Q A)…

A: Elasticity measures the responsiveness of quantity demanded to changes in price level.

Q: Yearly demand for water by residents and businesses in the city of Black Bear Lake is equal to Qo…

A: According to the question, The yearly demand : QD = 2000 - 10P , where QD is millions of gallons…

Q: tate in words what the Open Market Trading Desk should do (buy or sell US Treasury bonds) to offset…

A: The money demand curve shows the inverse relationship between the quantity of money demanded and the…

Q: The income components of GDP include all of the following except? A. indirect taxes B. interest…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: Domestic Supply $10 AIB $8 C $6 G DEF World P Domestic D 20 30 35 40 50 Q (millions of towels)…

A: A country becomes an importer when quantity supplied is less than quantity demanded. This happens…

Q: 15. C = 50 + 0.8Yd G =80 |=70 T=100 Based on the information given above, calculate the national…

A: The equilibrium level of the national income is defined as that point where the aggregate supply and…

Q: Determine the breakeven suggested retail price for a manufacturer's new consumer product (CP). The…

Q: Here is a chance to figure out technical material as a group. What are the key features and…

A: The Central Bank is the prime bank of any economy since without it there would exist no institution…

Q: If the number of buyers in a market decreases, then Group of answer choices A. supply will decrease…

A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes downward.…

Q: Suppose that we are in a country Localia, again trading LCL as our currency. We are still trading…

A: A rise in aggregate demand is expected as a result of increased government spending. Depending on…

Q: Why is the strait of Hormuz important to Iran and how do they use the strait of hormuz

A: Answer -

Q: Welfare after the Tariff is? OA+B+C+ G +E O B+E+D OC+G+E OA+B+C+E

A: "Welfare represents the overall well-being of the society."

Q: Time it takes to produce one car Time (hours) it takes to produce one Laptop (hours) Canada 2,000 4…

A: Opportunity Cost of one car in Canada = 2000/4 = 500 Opportunity Cost of one car in China = 3200/8 =…

Q: Demand and Cost facing Monopolist Total Total Marginal Marginal Total Price Quantity Variable Profit…

A: Total revenue can be calculated by multiplying the number of goods by the prices. Profit can be…

Q: A man wants to have a building to be used as a university, and he has two options. The first one is…

A: Given information First cost of building=P10M Salvage value=P450000 Annual Operating cost=P0.5M…

Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Assume that the total cost (fixed costs and variable costs) of producing 15,000 units of a good amounts to $300,000. If we add a "mark
up" equal to 25% of cost, what would be the per-unit selling price of our good? Hint: this is a "cost-plus mark-up" scenario
a.$20
b.$25
c.$12
d.$15

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose there is a decrease in the demand for high-definition televisions. What effect might this change have on the short-run average total cost curve for this product? _____ a) A decrease. When demand decreases, the short-run average total cost falls. b) An increase. When demand decreases, the short-run average total cost increases. c) No change. Demand determines the final price but not the costs for the product.
If the Marginal Cost for a product is found to be MC= 8x+60 , and the Marginal Revenue is given as MR= 1200 and the cost of 8 units is found to be $1600, what are: the Total Costs? the Fixed Costs? the Total Profit? the production level, x, that yields Maximum Profit? the corresponding Maximum Profit?
If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000 for 200 units of sales per month, what minimum price must it sell its goods in the market in the short-run and the long-run for the shop to continue operating?
Which of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production site
You have charged your client $8,650 on a cost plus percentage purchase of two sofas, two lounge chairs, and three occasional tables. If the occasional tables were 30% of the total client cost, and all cost the same amount, what was the net price of these tables at a 15% markup? Explain.
Explain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is on the rise. People often believe that large firms in an industry have cost advantages over small firms in the same industry. For example, they might think a big oil company has a cost advantage over a small oil company. For this to be true, what condition must exist? Explain your answer.
If the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit, suppose the price of Y decreases by 25%, ceteris paribus, should the farmer continue producing 500 units of output? Explain why or why not.
Showing your analytical work clearly in a step by step manner is a must. Otherwise points will be deducted. You can use Excel or any other graphing tool. A startup software company has indicated its cost, c(x), and revenue, f(x), as given below, such that x is the number of lines of programing code (units in 1000 lines). c(x) = 80000 - 2(x-200)2 f(x) = (x-10)3 + (x+10)2 Find the marginal cost analytically, and draw its graph Find the marginal revenue analytically, and draw its graph Solve for the x point where marginal cost is equal to marginal revenue analytically. Comment why is this point significant analytically. Write the profit function and draw its graph Is the profit function concave up or concave down? Answer all questions neatly please
You have a price of $5 per unit. Your total variable costs are $1 per unit and your fixed costs are $4,000 per month. How many units do you need to sell to break even for the month?
Price = $20, quantity = 400 units, unit cost = $15, implicit costs = $4,000. What does economic profit equal? Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If the total cost is $40 when Q = 2 and the total cost is $45 when Q = 3, then what does marginal cost equal? (c) What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2? (d) Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as the quantity of output increases?
Four Seasons Brewery has a variety of costs. Label which cost is EXPLICIT and which cost is IMPLICIT. Vats owned by four seasons to store the beer- Building, which is rented, in which to brew- Water bought from the city-
suppose the average variable cost of production is $15 when output equals 110 haircuts and $17.26 when output equals 140 haircuts. If the firm wants to maximize profit how many haircuts will it produce at what cost? explain your answer.