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- Q40 Which of the following paired concepts are equivalent to each other? a. Increasing returns; diseconomies of scale. b. Constant costs; economies of scale. c. Increasing costs; economies of scale. d. Increasing returns; increasing costs. e. Increasing returns; decreasing costs. Clear my choiceThe cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5-gallon water bottles are produced, fint the average costSuppose you sell items on a web site like Etsy and making them requires you to rent some equipment costing $1000 per year as a fixed cost. The materials for making these items cost $30 per item as a variable cost, and you sell them for a price of $50 each. What number of items D' must you make and sell each year for you to breakeven on the cost of this activity? You may be able to raise your sales price and then sell fewer items to maximize profit. Since other people make and sell similar items, a higher price lowers the demand for your product according to the price function p = $120 - 1.5 D. What is the profit maximizing number of items D* that you would need to make and sell to maximize profit? What is the profit earned for the annual number of items made and sold in part b?
- According to Accountants cost of production consist of both explicit and implicit cost ----a) Yes.b) Not surec) Falsed) none of the mentionedPlease indicate which multiple choice awnser is correct for question 1.1)1.2)1.3)Please indicate it correctly as I have had this awnsered with different letters to the awnser I was told 1.1 - A firm trebles its inputs and discovers that its output rises by a factor of four. This is an example of;Select one or more:a. constant returns to scaleb. diminishing returns to a variable factor c. increasing returns to scaled. economies of scale1.2 - Diseconomies of scale are present when.... Select one or more:a. marginalcostsriseb. long run average costs rise as output rises c. totalcostsfallasoutputrisesd. total costs rise as output rises 1.3 - If the demand for a firm’s product is price inelastic, this implies that Select one or more: a. price changes have no impact on quantity demandedb. a fall in price of 3% will lead to a decline in quantity demanded of more than 3%c. a rise in price will raise total expenditure on the goodd. a 5% rise in price will result in a fall in quantity…The daily cost of producing x high-performance wheels for racing bicycles is given by C(x)=0.01x2 1.5x−175+for0 x≤100≤ What production level will give the lowest cost per wheel? What is the minimum cost?
- Ouput Total Cost 0 $ 10 1 20 2 28 3 38 4 53 5 73 6 98 Refer to the provided table. The total variable cost of producing 5 units of output is Multiple Choice $10. $14.60. $63. $73.Given - p=35−0.5QTC=0.5Q2+5Q D)What are the break-even quantities? E)What quantity minimizes total cost? What is minimum total cost?A. Will you invest a project that requires a $ 200,000 today and returns $50,000 at the end of the first year, $70,000 at the end of the second year and $100,000 at the end of the third year? Assume a discount rate of 5%. . B. An economist estimated that the total cost function of a single - product firm is TC= 125+5Q+3.5Q^2. Determine the average variable cost (AVC) of producing the 5 units. C. An economist estimated that the total cost function of a single -production firm is TC=125+5Q+3.5Q^2. Determine the marginal cost (MC) of producing the 5th unit? No derivative is required for this question
- Give the formulas for cost and plot AFC, MC, AVC, and AC if the cost function isa C = 10+10q (MC = 10)b C = 10 + q2 (MC=2q).c C = 10 + 10q - 4q2 + q3 (MC = 10 - 8q + 3q2).Which cost curve(s) will be impacted if a firm swtiches from plastic cups to more expensive biodegradable disposable cups? Why? Which cost curve(s) will not shift, and why not?According to Accountants cost of production consists of both explicit and implicit cost ………………. a) Not sure b) False c) None of the mentioned d) Yes
