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Does the firm can also earn zero
a.
maybe
b.
yes
c.
sometimes
d.
no
Step by step
Solved in 2 steps
- Please show make the work. I do not understand how the answer is C. However, someone said the answer is B. A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information? a. The company is making a loss. b. The company needs to cut production. c. The company needs to increase production. d. Not enough information is provided. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.The difference between economic profit and accounting profit is? Average cost Direct costs Economic costs Variable costs Marginal costsD. List 2 (in numbers) 2 implicit costs that Jon has not included. E. What is Jon’s pure economic profit (or loss) in numbers?
- If MR > MC, the firm should produce more output.Ball Bearings, Inc. faces costs of production as follows:Table 1: Ball Bearing Inc. Production CostsQuantity Total Fixed Cost Total Variable Cost0 100 01 100 502 100 703 100 904 100 1405 100 2006 100 360(a.) Calculate the company’s average fixed costs, average variable costs, average total costs, and marginal costsat each level of production.(b.) The price of a case of ball bearings is 50. Seeing that she can’t make a profit, the Chief Executive Officer(CEO) decides to shut down operations. What are the firm’s profits/ losses? Was this a wise decision?Explain.(c.) Vaguely remembering his introductory economics course, the Chief Financial Officer tells the CEO it isbetter to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost, average variable cost, average total cost, and marginal cost., now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of $25 each. a. What will be the company’s profits or losses? b. How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? c. At the given quantity and price, is the marginal unit produced adding to profits?
- 21) In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is positive and decreasing.A) increasing; decreasing B) increasing; increasingC) decreasing; decreasing D) decreasing; increasingDistinguish between explicit and implicit costs, giving examples of each. Why does the economist classify normal profit as a cost? Is economic profit a cost of production? Explain why or why not.(A) what were the fixed costs of production for the firm? (B) at what rate of output was profit computer maximized?(choose the highest output level.) (C) at what output rate was total profit maximized? Computers per month
- What does it mean to be operating a firm in the "long run?" What does it mean to be operating a firm in the "short run"? What are the practical implications for managing a business if you are in "short run?How much profit will the firm make as profit in the short run? What is the short break even point? What is the firms long run minimun cost? Why does the long run average cost curve decrease and then increase? Give some reasons that the real-world experenciences thisRequireda. How much is the fixed cost to produce the natural-organic oil? b. How many barrels of natural-organic oil should the firm produce to maximize its profit? c. How much is the price of the natural-organic oil per barrel? d. At what production level would the marginal cost exceed the average cost? e.bHow many barrels of natural-organic oil reflect the lowest minimum average variable cost?
