Last year Doreen's Dairy earned a total revenue of $42 thousand from selling 7 thousand pounds of Swiss cheese. The Dairy spent $28 thousand on variable inputs and incurred a total cost of $40 thousand. The owner, Doreen, had an offer to work for another firm for $25 thousand. The firm's economic profits and fixed costs for the year are, respectively?   a. -$23 thousand and $14 thousand b. $2 thousand and $12 thousand. c. -$11 thousand and $14 thousand. d. $0.3 thousand and $12 thousand.

Q: Question 22.22.   The following cost data are for a firm in the short run:  Output  Total Cost 0…

A: The average variable cost (AVC) is the total variable costs per unit of output. Thus, AVC=TVCQ Where…

Q: The following table shows a firm’s input, output, and costs in the short run. The price of each unit…

A: MPn=TPn-TPn-1MP1=TP1-TP0=4-0=4MP2=TP2-TP1=8-4=4

Q: Assume that in the short run a firm is producing 100 units of output, has average total costs of…

A: Total cost = total fixed cost + total variable cost Now  ATC = $200, output = 100 ATC = TC /output…

Q: There is a different short-run ATC curve for each level of * variable cost. variable inputs. fixed…

A: The ordinary shape for a short-run normal expense curve is U-molded with diminishing normal expenses…

Q: he short-run and long-run average cost functions of a firm are generally U-shaped. This implies high…

A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…

Q: Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles…

A: Tricycle is a function of function of two set of inputs :  Steering wheel , seat & frame : (v)…

Q: Please provide an example of sunk costs in bakery business and explain why they are sunk costs.

A: Money that is already spent, and cannot be recovered, is called sunk cost. There is popular saying…

Q: A firm’s product sells for $4 per unit in a highly competitive market. The firm produces output…

A: The marginal product of capital MPk is the additional output when one more unit of capital is used…

Q: An economist left her $100,000-a-year teachingposition to work full-time in her own…

A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…

Q: An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units per…

A: Cost function shows how the cost of the production of a good changes with the change in the quantity…

Q: Cost LRAC 40 30 20 10 100 200 400 800 Output c. What is the firm experiencing as it increased it…

A: The graph shows the long run average cost curve.  c) If the firm increases the scale of operations…

Q: If you have the following Marginal cost (MC) Variable costs (VC) Total cost (TC) Fixed cost Quantity…

A: Since you have posted multi subparts question, as per guideline we will solve first 3 subpart only.…

Q: Assume that in the short run a firm is producing 200 units of output, has average total costs of…

A: Total fixed cost is a part of Total cost which remains constant. The total cost can be calculated…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Solving with the help of formula

Q: Marginal Product Variable Cost Labor Output Fixed Cost so $5 1. 100 100 $5 $5 2 250 $10 $5 3 350 $15…

A: First, we will calculate Total Cost by adding Fixed Cost+Variable Cost. Then, we can calculate…

Q: Define fixed and variable costs of production. Why do you think bigger firms may have lower average…

A: Answer: Fixed cost: it refers to the cost that is constant in the short run and it does not change…

Q: Michelin Corporation, a French firm located in Nova Scotla produces automobile tires and has the…

A: Marginal product of labor is the change in output that occurs when an additional unit of labor is…

Q: 6. A firm's long-run total cost function is given by LTC = 115.000Q-500Q2 + G where Q is the…

A: Gradually in simple words we can say that the economies of scale are determined to be as the cost…

Q: Question 5 of 7 A firm's long-run total cost function is C 360 + 40Q = 10Q2. a. What is the shape of…

A: Given: A firm's long-run total cost function is: C = 360 + 40Q + 10Q2 To Find: The shape of the…

Q: and average products when Jabot chooses L* to minimize Cost of Qo, given fixed Ko. MP* and AP* are…

A:

Q: With appropriate examples, distinguish between (i) short run and long run (ii) fixed cost and…

A: The most important aspect in the business firms is the time period and the production amount as well…

Q: Practice questions 1. Given a firm's total cost function as = 12 + 60Q- 15Q² +Q³ Suppose that the…

A: The firm has to incur the cost while producing goods and services. Costs are divided into many parts…

Q: 2. The following isoquant lines represent a bakery where the iso-cost equation is C =L+K. Show the…

A:

Q: Assume that in the short run a firm is producing 500 units of output, has average total costs of…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question…

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

Q: Table 1 below, shows the output of 6 machinists in the sewing section of the business on a daily…

A: Marginal Product is the additional output produced by using additional inputs. Average Product is…

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: The accompanying table shows the total daily output for a firm producing specialty cakes and…

A:

Q: The figure below shows a firm's long-run average cost curve (LAC) in light 2. blue. Three of the…

A: A long run average cost curve is known as an arranging bend. This is on the grounds that a firm…

Q: Consider a firm that is currently producing a level of output that maximizes its profits. The firm…

A: Given:  Revenue of the firm = $40 million per month. Worker Compensation = $30 million Renting of…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here given that, Short run a firm is producing 1000 units of output , Q = 1000 units  Average total…

Q: Question 7 Short run costs A firm's short-run cost function is C(q) = 10q - 12q? +0.5q+ 400 1. Find…

A: Here, a firm's short-run cost function is given as: C(q)=10q-12q2+0.5q3+400

Q: Assume that In the short run a firm Is producing 100 units of output, has average total costs of…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: Q. No .4. Consider the following cost information for Yasir’s tea stall.       (Cups of tea per…

A: Fixed cost=30 variable cost (VC)= total cost-fixed cost average fixed cost (AFC) = total fixed…

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

A: Given information: Ike Bikes is a manufacturer of bikes, currently producing bikes in its only one…

Q: c) The table below contains cost information pertaining to a hypothetical firm operating in the…

A: The total cost of the firm refers to the monetary value of inputs used by the firm for the…

Q: The following table shows a firm’s input, output, and costs in the short run. The price of each unit…

A: Average fixed cost: AFC Average fixed cost is the cost that incurs with the production of additional…

Q: At the end of the year, a firm produced 20,000 laptop computers. Its total costs were $10 million,…

A: The variable cost: The variable cost can be calculated as follows: Thus, the value of variable cost…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: a) Marginal Cost The marginal cost of production is the difference in total production costs that…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…

A: Average cost is the per unit cost of production

Q: rue or false 1-The marginal cost curve intersects the minimum point of both the average total cost…

A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

Q: 49. Last year Doreen's Dairy earned a total revenue of $42 thousand from selling 7 thousand pounds…

A: Here the variable cost given is $28 thousand Total cost given is $40 thousand To get the fixed cost:…

Q: 23. The following table represents the short-run total cost schedule of an energy drink…

A: The total cost incurred by a firm in the short run includes fixed costs and variable costs. Fixed…

Q: [16] Operating in the short run with one fixed input and one variable input, the marginal product of…

A: (16) Answer: Given Information, Marginal Product (MP) = 10 - X Output price = 3 Variable Price (Let…

Q: Homer Corporation of Edmonton produces paper for marijuana produces and has the following output…

A: Diminishing Marginal Returns is the situation where marginal product starts falling. It occurs…

Q: The expansion path of a firm gives five different quantities of output such as 10,20,30,40 and 50…

A: Price of labor = $25 Price of  per unit capital = $100   Long-run costs of the firm at given…

Q: Question 22.22  The following cost data are for a firm in the short run:  Output  Total Cost 0 $400…

A: Average variable cost is the total variable cost per unit of output produce by a producer or firm.…

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.