Q: If the firm hires 5 employee, total fixed costs equals
A: Total fixed cost is the cost which is even exits when output is zero. So at zero output we have the…
Q: What is the avg variable cost of the second unit produces? Quantity total cost 0 20 1 25 2 35 3 50
A: Total Cost is the sum of fixed cost and variable costs. Total Cost=Total Fixed Cost+Total Variable…
Q: A fast food restaurant can produce a hamburger for $1.15. If the restaurant's daily sales are…
A: Given that, The increasing rate of Hamburgers = 30/day Cost of one Hamburgers = $1.15 The daily cost…
Q: Define the term semi-variable costs?
A: The costs incurred by a producing agent in the procurement of factor inputs for the production of a…
Q: Find the value of the profit when the total revenue is $65 billion and total cost is $25 billion?
A:
Q: A. increasing return to scale B. decreasing returm to scale C. constant return to scale D. depends…
A: The production function is a line or boundary that indicates the maximum amount of output that may…
Q: A firm is thinking about consolidating its mobile battery assembly in one location. The leading…
A:
Q: 1 Average fixed cost equals a. Average total cost minus average variable cost b. Total variable cost…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Is a type of cost which does not vary with the unit of production and will remain constant…
A: Cost refers to the money involved in producing the goods and services by the producers. They include…
Q: According to Accountants cost of production consist of both explicit and implicit cost ---- a) Yes.…
A: According to Accountants cost of production consist of both explicit and implicit cost. This…
Q: Fixed costs decrease per unit of output as volume decreases. True O False
A: Fixed Cost is that cost which are not changed as output changed, that means if output increases or…
Q: Find the cost function for the marginal cost and fixed cost. Marginal Cost Fixed Cost (x = 0) dC…
A: Marginal cost: Marginal cost can be defined as the cost that is incurred on the production of an…
Q: In the short run , a firms total cost is $200 if it does not produce any units of output. Its…
A: When Q = 0, TC = TFC = $200, which stays unchanged across output levels. TC = TFC + TVC = TFC + AVC…
Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.
A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…
Q: Identify a fixed cost
A: A fixed cost is referred to as the cost which would not change due to an increase or decrease in the…
Q: The difference between ATC and AVC decreases with decrease in level of output.
A: Average total cost (ATC) is the ratio of the total cost (TC) and the quantity (Q). ATC=TCQ Average…
Q: A new machine increases fixed cost and may or may not increase ATC as the…
A: The cost of production is the cost incurred in the process of production in the economy by a firm.…
Q: Solve for A. Variable and fixed cost B. Estimated increase in cost for additional days…
A: Cost function = FC+MC* Q Whete VC = MC*Q FC = cost at Q=0
Q: When diminishing marginal returns set in, total product a. is negative Ob. increases at an…
A: Total product (TP) is the total output produced by the given amount of factors of production.…
Q: The variable cost to make a certain product is $73 per unit. Research indicates that the lowest…
A:
Q: The difference between variable cost and fixed cost is that Select one: a fixed cost is paid even…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Find total revenue if the price function is P=70Q-500
A: Price function is: P=70Q−500 Where, P is the price of a good Q is quantity of a good
Q: The law of diminishing returns or variable proportion is only applicable in the
A: Law of Diminishing returns or variable proportion states that in the short run, when more of…
Q: ) The short run is a time period in which: (a) all resources are fixed.…
A: In economics, we study the interaction and the decision-making of the economic agents at the…
Q: Average cost is $30 and the total cost is $900 Calculate the output
A: Average cost is the per unit cost of producing an output.
Q: .. mated cost to construct a 30,000 square foot warehouse is $ (Round to the nearest dollar.)
A: Warehouse, Size x1 => 23000 ft2 Warehouse, Size x2 => 30000 ft2 Cost of x1 => 600,000 Cost…
Q: Fixed costs and Variable costs are considered to be costs.
A: The factor of productions are the labor, raw materials, capital, land etc which incurred some cost.…
Q: A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b)…
A: Given: Q = 160 = 2√(KL) r = 4, k = 2 The cost function can be written as - 4K + 2L (Assuming r =…
Q: An isoquant represents combinations of inouts that: produce the same level of outout. produce…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Find the value of TFC if average fixed cost is $50 and the output is 50 units
A: The given information is as follows:- Average fixed cost = $50 Output = 50 units We have to…
Q: Need answers ASAP... Which of these costs is considered as the most important cost because if it is…
A: The firm produces goods and services and incurs cost including fixed cost and the variable cost.The…
Q: What is the formulae used to find unit cost?
A: A unit cost is a net cost borne by a business to manufacture, store, and sell one unit of a product…
Q: Total variable cost is $40 and total fixed cost is half of it. Find total cost
A: According to the above mentioned question, the values are:- Total variable cost = $40 million Total…
Q: True or false: a change in fixed costs will change marginal cost. a.True b.False
A: cost of production refers to the monetary value incurred in the process of production and cost is…
Q: What type of cost is included in economic costs, but not included in accounting costs? a. Explicit…
A: Accounting cost includes all the explicit cost. In other words, all the payment made by the business…
Q: Cost savings may be ________________ such as lower prices paid, or ______________ such as increased…
A: There are 6 types of cost cost savings : Historic saving Budget savings Technical savings RFP…
Q: True or false: a change in fixed costs will change average total cost. a.True b.False
A: The measure that depicts the expenses that are incurred for carrying day-to-day expenses of the…
Q: True or False The average total cost cannot equal marginal cost.
A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is…
Q: The difference between variable cost and fixed cost is that Select one: a. fixed cost is paid even…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: State the law if Diminishing Returns
A: A consumer's increased enjoyment from having one more unit of an item or service is referred to as…
Q: Average fixed cost will be always rising. always falling. U-shaped. constant.
A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…
Q: When there are diminishing returns to a factor the total product always decreases 1)True 2)False
A: According to the given question Diminishing returns to a factor is basically caused by when the…
Q: d. Show that the cost function is non-decreasing in w,r and q.
A: Cost function is non- decreasing in w, r and q
Q: If the short run is 18 months does it follow that the long run is longer than 18 months?
A: In economics, the short-run is a time period during which the various production inputs (wages,…
Step by step
Solved in 2 steps
- Explain factors and production their earnings and all of the aspects like fixed factors, variable factors, short run and long run related to factors of production.Give typing answer with explanation and conclusion Production function Y=8*K^.33*L^.66 Now what if there is skill biased technological change that makes capital more productive relative to labor such that alpha or the exponent on K rises to .5 and the exponent on L falls to .5 By what % does real wage change? By what % does R/P change?Why do we assume that changes to Total Factor Production are persistent? i know that its important and that it affects the outcome. is it because persistent means the changes are not temporary in the market and therefore doesnt try to readjust over time but rather it has long term affects.
- (7)Which one of these is false when compared to the relationship between marginal and average product? (a) When average product is increasing in labor, marginal product is greater than average product. That is, if APL increases in L, then MPL > APL. (b) When average product is decreasing in labor, marginal product is less than average product. That is, if APL decreases in L, then MPL < APL. (c) The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything. (d) When average product neither increases nor decreases in labor because we are at a point at which APL is at a maximum, then marginal product is equal to average product.(7)Which one of these is false when compared to the relationship between marginal and average product? (a) When average product is increasing in labor, marginal product is greater than average product. That is, if APL increases in L, then MPL > APL. (b) When average product is decreasing in labor, marginal product is less than average product. That is, if APL decreases in L, then MPL < APL. (c) The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything.Suppose the production data of XYZ company mentions labor (L) as a variable input and machine (K) as a fixed input. Complete the table as XYZ increases its number of laborers (L). L TP MP AP 1 100 100 100 2 220 120 110 3 270 1) _____ 90 4 270 2)_____ 3)_____ 6 4)_______ 5)_____ 50 8 180 6) ____ 7) ____
- Question: Suppose the firm's only variable input is labor. Using the table, what level of output corresponds to where the firm's production fuction begins to rise at a diminishing rate? Also, at what level of output would the firm's average product of labor (APL) be maximized? Explain.1. Supose that·Total Factor Productivity increases·Capital depreciates by 10%Everything else equal, what happens to labor demand in the economy?A. It decreases (i.e. shifts to the left of the demand curve)B. It increases (i.e. shifts to the right of the demand curve)C. Not enough information to answer 2. Does an increase in the wage causes leisure always to increase, because leisure is a normal good?A. YesB. NoC. Only if the substitution effect dominates the income effectD. Only if the income effect dominates the substitution effectA company produces children's toys. The manager noticed the connection between the number of employed workers and the quantity of toys produced per month, which are presented in the table of following: a) In what period is this firm operating? Why? b) What is the average product when 5 workers are employed? c) What is the marginal product when 7 workers are employed? What does this value mean? d) Does the law of declining marginal income apply? If yes to which worker? e) In this production function do we have total declining revenues? If so, which worker happens? f) Graph the curves of total product (TP), marginal product (MP) and product average (AP).
- The work force of a certain factory is growing at rate of 2 per month while the average productivity of a worker is growing at a rate of 4 units per month. If the work force is currently 100 and the average productivity per month is 200 units, at what rate is the total productivity per month of the factory increasing? (a) What happens if the work force is declining by 2 per month? (b) What happens if the average productivity is decreasing by 5 per month?Show and explain the AS adjustment process, in other words, how output adjusts over time, from the short run to the long run (following the increase in G)hy does a measure of labor productivity—the output produced per worker– rise for many firms during recessions? During the boom years period of 2005through November 2007, the annual average output per worker was lower in U.S.manufacturing than during the Great Recession of 2007–2009 as well during therelatively low-demand years since then through 2013.Firms produce less output during recessions as demand for their products falls.Consequently, firms typically lay off workers during recessions. Thus, whetheroutput per worker rises or falls depends on whether output or employment fallsby more. The labor productivity pattern over the business cycle differs across in-dustries. If we know about a firm’s production process, can we predict whetheroutput produced per worker will rise or fall with each additional layoff?