Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total variable costs are.Multiple Choice$110,000.$150,000.$80.McGrawType here to search< Prev8 of 20Nex|直 0Nextfout retund ou

Total variable cost is the cost that depends on the level of production chosen. It varies with the…

Answered: Assume that in the short run a firm is…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 10PA

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Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
A Milton company works in perfect competition market, its total cost curve in short run isgiven in this function:TC = 200 − 4Q + 0.5Q2a. What output level should the firm produce to maximize profit? knowing that averagerevenue is $10.b. What is the firm profit at this level of output?
a) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
35. If a firm triples inputs and produces twice the output, then there are constant returns to scale. no returns to scale. decreasing returns to scale. increasing returns to scale. Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 10 units of output? Multiple Choice $10 $15 $20 $45
Nina is a farmer that grows and sells tomatoes. Her total explicit and implicit costs are 950000 per year, and her explicit fixed cost are 340000 per year. Nina could otherwise earn 60000 in her next best alternative lone of business or employment. Each bushel of tomatoes sells for $40. This year, nina sold 25000 bushels of tomatoes. What are ninas average fixed costs, average variable costs, and average total costs of production? Interpret what each of these costs mean for nina. What is ninas economic profit? What is her accounting profit?
An ice cream producer has ﬁxed costs of $70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs $10 in the market whilethe producer faces variable costs of $3 per tub.a. What is the economic breakeven level of production?b . Calculate the ice cream producer’s monthly proﬁts at full capacity. What would happen to the monthly proﬁts if another ice cream producer entered themarket, driving the price of ice cream tubs down to $7 per unit?
You are given the following cost data. You can’t produce fractions of a unit. Q 0 1 2 3 4 5 6 TFC 12 12 12 12 12 12 12 TVC 0 5 9 14 20 28 38 If the price of output is Rs 7, how many units of output the firm will produce? Will the firm operate in short run and long run? b) How does Total Revenue change with change in price under conditions ep=1, ep<1 and ep>1?
Megan’s Snow Shoveling Service, in which Megan is the only employee, has the following cost schedule. Quantity(sidewalks shoveled per day) Variable Cost Total Cost AVC ATC MC 0 $0 $30 - - - 1 10 40 10 40 10 2 25 55 12.5 27.5 15 3 45 75 15 25 20 4 70 100 17.5 25 25 5 100 130 20 26 30 6 135 165 22.5 27.5 35 a) What are Megan’s fixed costs? Given the nature of sidewalk shoveling production, why does Megan’s marginal cost curve look like it does in your graph? b)Suppose the market price for shoveling a sidewalk is $20 per sidewalk. How many sidewalks will Megan shovel each day to maximize profit? c)Suppose the market price of shoveling a sidewalk rises to $25 because it has been a snowy winter. How many sidewalks will Megan shovel each day to maximize profit?
2. Total Cost Function is TC(q)=2q 2 + 20q +50 I. Show that MC is less than AC, where AC is falling. II. MC=AC at the point where AC curve is Horizontal. III. Mc exceeds AC where AC is rising
how Marginal cost been calculated here. {MC=Change in ATC/Change in Q} please explian still not clear!!
In the long-run Firm A incurs total costs of $1200 when output is 30 units and $1550 when output is 40 units. Firm A exibits A.constant returns to scale B.marginal returns to scale C.increasing returns to scale D.decreasing returns to scale.

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Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total variable costs are. Multiple Choice $110,000. $150,000. $80. Mc Graw Type here to search < Prev 8 of 20 Nex |直 0 Next fout retund ou