Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of each.

Q: Define different types of costs. Explain Fixed and Variable costs with the help of examples.

A: Types of cost in short run Fixed Costs (FC) It is the cost of fixed factors.The costs which don’t…

Q: Distinguish between/ among a.  The short run total fixed cost, total variable cost and total cost…

A: Cost refers to the value of the resource(s) that gets exhausted in the process of production or…

Q: Average total cost, average variable cost marginal cost and marginal product b. The relationship…

A: Average Total Cost or Average Cost is the total cost (TC) divided by the number of units produced…

Q: Question 2 A. List and explain which of the following is a fixed cost or a variable cost for…

A: The cost of fuel used in its planes Variable cost The rent on its piarco headquarters Fixed cost The…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the…

A: Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1

Q: Find the attached file.

A: Cost is the expenditure incurred by firms on the production of goods and services. Production costs…

Q: What are the kinds of cost which firm face in short run. Explain theoretically and graphically the…

A: Cost is the money that is used to produce goods and services.

Q: Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: 1.A producer borrows money and starts a business. List and explain which of the following is a fixed…

A: Fixed Cost: The cost which does not depend on the level of output or activity. Variable Cost: The…

Q: If the Marginal Cost for a product is found to be MC= 1500/15x+100' , and the cost of 80 units is…

A: We have, x= 80 Total cost = TC = $6000 at x = 80 Marginal cost, MC = 1500/ (15x+100) To find the…

Q: What are the variable costs?

A: Variable cost refers to those costs that are changed along with the changes in the production. In…

Q: The first two units of a product cost a total of $9,000 to produce. If you believe an 80 percent…

A: Production cost = Original Cost * learning rate ^log 2 n.....(equation 1) The given learning rate is…

Q: Discuss some of the difficulties encountered in applying these economic concepts in practical…

A: The fixed cost is the cost which remains the same even when the firm produces nothing as output.…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: onsider the production process for a Vending Machine Service. Identify the fixed costs associated…

A: Small business can be described as a partnership, privately-owned company, or sole proprietorship…

Q: Betty's Bakery Quantity of cakes 1 2 3 4 5 6 7 8 Fixed Cost Variable Cost $13 $28 $64 $108 $133…

A: Marginal cost refers to the increase or decrease in the cost of producing one more unit or serving…

Q: Use the table to answer the uestion below: Quantity          Total Cost  0…

A: The cost for producing 0 units would be the fixed cost. Cost incurred irrespective of number of…

Q: Carolyn knows average total cost and average variable cost for a given level of output.  Which of…

A: TC is Given  AVC is Given Output Is given

Q: Average and marginal products AP, MP 2,700 2,025 1,925 1,800 Average Product 825 Marginal Product 01…

A: Average variable cost: It is the total variable cost of a unit of goods. Variable costs keep on…

Q: Quèstion 33 The increase in total cost that results from producing one additional unit of output is…

A: Average Fixed Cost is the total fixed cost per unit of output.  Average Variable Cost is the total…

Q: A business incurs the following costs per unit: labor $125/unit, materials $45/unit, and rent…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost.A).Total variable…

Q: Given the cost information below, answer the following questions. Output Total Cost $ 40.00 10…

A: a.Total fixed cost is equal to total cost when output is…

Q: Suppose, Home Style is a well-known furniture manufacturer in the Sultanate. To meet the increasing…

A: The key motive of the firms operating in a market is to earn profits from the sale of goods and…

Q: Consider a small photography studio with 6 workers and 3 The total cost of labor and capital is…

A: In economics, the cost of production is defined as the expenditures incurred to obtain the factors…

Q: a. Calculate and fill in the column of marginal products. What pattern do you see? How might you…

A: Marginal product of labor refers to the amount of additional output that obtained by increasing one…

Q: Quick Check Multiple Choice No (3) A firm is producing 1,000 units at a total cost of $5,000. If it…

A: Marginal cost refers to the additional cost of producing an extra unit of output. Average variable…

Q: Total cost divided by quantity of output is Select one: a. average variable cost b. average total…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: (1.) A producer borrows money and starts a business. He himself looks after the business. Identify…

Q: how do you find the total fixed cost if you don't know total variable cost

A: To determine the TFC of the whole table, we just need to find TFC of any quantity because TFC…

Q: firm has fixed costs, then its ________ cost exceeds its ________ cost. a.average total; average…

A: Here, Q = quantity  ATC = average total cost  TVC = total variable cost AVC = average total cost…

Q: planning for the company. You are required to generate costs data from the equation below. C(y) =…

A: Answers   Total Cost: C(y) = 23y2 + 12y + 8   A. Fixed Cost = Total cost when y = 0   C(y) = 23(0)2…

Q: Identify the explicit costs incurred by this business. Why are they explicit costs?

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

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: A producer borrows money and start a business . He himself looks after the business. Identify the…

A: # In a business if we consider the assets of the firm and its opportunity cost then this is counted…

Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…

Q: Classify the following milk bar short-run costs as fixed cost or variable cost  Milk truck Fruit…

A: The short-run is the time period when there is at least one factor which is fixed and cannot be…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average cost is the cost of producing one unit of an output. Average cost is calculated as the ratio…

Q: A business incurs the following costs: • Labor: $105/unit • Materials: $40/unit • Rent:…

A: Given Information • Labor: $105/unit • Materials: $40/unit • Rent: $350,000/month Firm…

Q: Nokia sells a new budget cell phone. Based on information provided by the accounting department, the…

A: Total cost is sum of fixed cost and variable cost. Fixed cost does not depend on quantity whereas…

Q: Calculate and plot the following: No of units Total cost 0 2 1 9 2 12 3 15 4 20 5 30…

A: The total cost in any firm is equal to the sum of the fixed costs, like the cost of land, machines,…

Q: The difference between economic profit and accounting profit is?   Average cost Direct costs…

A: Cost is the expenditure incurred by firms on the production of goods and services. The cost can be…

Q: a. A producer borrows money and starts a business. He himself looks after the business. Identify…

A:

Q: uantity produced/day Total cost Variable cost 0 $50 0 1 $75 $50 2 $110 $75 3 $155 $100 4 $210 $150 5…

A: In a market, average variable cost is the per unit variable cost, marginal cost is the additional…

Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

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