Lewis contracted with the government to dredge 2 million cubic yards of silt from a ship channel. After excavating 1.5 million cubic yards, he quit the job. Should he be paid anything for partial performance? Explain

Lewis contracted with the government to dredge 2 million cubic yards of silt from a ship channel. After excavating 1.5 million cubic yards, he quit the job. Should he be paid anything for partial performance? Explain

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: With the addition of the fourth unit of input, the marginal product is Multiple Choice 10 and…

A: Marginal product is the change in total output resulting from employing an additional unit of…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: The economic cost is the sum of all losses of any goods that have a monetary value attached to them…

Q: A product requires 14 hours to complete the first unit. Managerial experience has estimated the…

Q: Indicate whether each of the following is anexplicit cost or an implicit cost.a. A manager’s…

A: Explicit Costs are costs that are directly incurred by the business. They can be seen in the…

Q: A firm faces the following costs: total cost of capital = $1,000; price paid for labor = $12 per…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Rising short-run average variable costs of production for a firm indicate that Question 4 options:…

A: Average variable costs are the costs incurred on variable factors or inputs per unit of output. The…

Q: Timothy quits his job which pays $84000 a year, to enrol in a 2-year graduate programme. His annual…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Calculate the multifactor productivity in dollars per dollar for the following: 6660 units produced,…

A: Multifactor productivity is the measurement that compares the output with the total amount of inputs…

Q: The process for renewing a driver's license at the Archer County Courthouse is as follows. First,…

A: Labor economics: Labor economics aspects try to comprehend the working and elements of the business…

Q: factors of production

A: The production factors help the production process to run efficiently. There is main four production…

Q: A firm trebles its inputs and discovers that its output rises by a factor of four. This is an…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Why can the distinction between fixed costs and variable costs be made in the short run? Classify…

A: There are some costs that will not change as the level of output changes. If the firm wants to…

Q: Explain every point with graph. 1. Economic and business cost . 2. Short run production analysis /…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Spencer manages a store that sells speakers. Each Master Blaster takes 36 hours to create the…

A: According to the question, Spencer is the manager of a speaker store. The plastic pieces take 36…

Q: demonstrate and explain how costs concepts help in managing production between the shortrun and…

A: When businesses change output levels over time in response to anticipated economic gains or losses,…

Q: 0. If all inputs are trebled and the resultant output is doubled, this is a case of

A: Returns to scale refers to the extent of change in output level when all the inputs are raised by…

Q: Identify yes or no as to whether or not each of these costs would be relevant for the decision on…

A: Business have two types of cost. fixed and variable fixed cost cannot be shifted and have to be…

Q: If a firm has economies of scope, which of the following would best decribe what the firm is…

A: Economies of scope is defined as a situation where the production of one good lowers or reduces the…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Opportunity Cost is the sum total of Accounting Cost and Opportunity Cost. Accounting Cost is the…

Q: This are the additional costs that result from increasing the output level by one or more units.

A: GIVEN This are the additional costs that result from increasing the output level by one or more…

Q: Minimum efficient scale occurs at an output of 10000 d. 35000 22000 e. 43000 c. 28000 At which…

A: We are going to find the production level responsible for minimum efficient scale and diseconomies…

Q: It costs a firm $200 per unit to produce product A and $350 per unit to produc together at $500 per…

A: There two type of action in which firm can work (i) scale and (ii) scope , if the firm work good in…

Q: Differentiate between explicit and implicit costs. Explain the importance of considering both types…

A: Explicit cost: It is the cost that is incurred in running the day-to-day operations of a business…

Q: Question 3 If a firm is able to double output when it doubles input, it has... Group of answer…

A: "Returns to scale refers to the rate at which output produced changes when all inputs in the…

Q: What happen when you add Total Fix Cost and Total Variable cost that is divided by their quantity.…

A: Production cost is the monetary value that is used to acquire factor of production to produce goods…

Q: “My friend, Mike, is a CPA and owns his own tax business. During tax season, he hires additional…

A: Law of diminishing marginal returns states that as a person goes on increasing the amount of an…

Q: Exhibit 11-4 Units of Output Variable Cost Total Cost Marginal Cost (dollars) (dollars) (dollars) 80…

A: We know, Average Fixed cost (AFC) = (TC-VC)/q When the output = 4 units, at that point Total cost…

Q: “Short-Run Production Theory is the mirror opposite of Short-Run Cost Theory,” Is this statement…

A: Answer -

Q: .Which of the following is an example of a fixed cost? A. cost of employees who work overtime B.…

A: In general, a firm incurs various costs in the daily business and these costs can be classified as…

Q: Define returns to scale and its implications for production decisions.

A: Returns to scale refers to the percentage change in the output with respect to the percentage change…

Q: You own a farm that requires spending of $93,318 to generate $275,393 per year. You discover that…

A: Given; Revenue generated= $275,393 Amount spend on farm= $93,318 It is discovered that the farm is…

Q: which requires labor hours along with time on two machines. Producing a unit of trash cans requires…

Q: A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two…

A: Marginal product of labor is the change in in output that arises due to employing an additional…

Q: You are a newspaper publisher. You are in the middle of a oneyear rental contract for your factory…

A: The cost of the factory rent was $500,000 per month and the wage cost includes $1 million. These two…

Q: Indicate whether each of the following is an explicit cost or an implicitcost.a. A manager's…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Bloomswood Hotel is situated in Forkland, a picturesque town in the mountain region of a country.…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: The cost formula for a company can be modeled by C=1092+40x+0.1x2C=1092+40x+0.1x2 where xx…

A: The break-even point of a firm is the production level where the total revenue generated from the…

Q: When production is at level zero then the value of ___________ cost is always zero.

A: Total cost = fixed cost + variable cost Fixed cost always remain constant even when output is zero.…

Q: Which of the following results when an increase in all inputs results in a more-than-proportionate…

A: Answer - a) Diseconomics of Scale - It is the opposite of economics of scale . Diseconomics of…

Q: What is the optimization condition for economically efficient use of energy in production in the…

A: In the short run, the optimal production occurs at the following point. MR = Price of input / Price…

Q: If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal…

A: Given Marginal Product of labor(MPL) = 1 ton of output. Marginal Product of capital l(MPK) = 7…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following costs would not be included as part of manufacturing overhead? (A) supplies for the office workers (B) Insurance on production equipment (C) Depreciation of product equipment (D) Direct labor costs
Why is it important for managers to understand the concept of break-even points? Are there any drawbacks?
if the employee sold house for $340000,what is the total recruiting expense?
Classify the following costs into either being product cost or period cost:(a) Raw material costs(b) Income taxes paid(c) Interest expenses on borrowed funds(d) Wages incurred in producing products(e) Fire insurance premium paid on factory buildings(f) Electric bill for the warehouse operation(g) Salary paid for engineers(h) Material handling cost related to production(i) Salary paid for plant managerU) Leasing expense for forklift trucks in warehouse operation(k) Mortgage payments on factory buildings
Classify each of the following cost items as mostly fixed or variable:a. Raw materialsd. Administrative salaries g. Direct laborj. Rentb. Depreciatione. Insurance (building & equipment) h. Suppliesk. Payroll Taxesc. Clerical salariesf. Property taxesi. Sales commissionsl. Interest on borrowed money
In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?
Paradise Pottery had the following costs in May when production is 800 ceramic pots: materials, $8,700; labor (variable), $2,900; depreciation, $1,100; rent, $900; and other fixed costs, $1,500. If production changes to 900 units, how much will the total variable costs and total fixed costs be, respectively?
1. Last year, your company purchased a site license to the accounting software suite CookTheBooks® for $1,150. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter®, for $950. How should your company assess or quantify the cost of the decision to replace its software? The BeanCounter® software includes a monthly fee of $37 per site license (i.e., the fee to the company is $37 per month regardless of the number of computers on which the software is installed or how often it is used); how would the company characterize this cost (in terms of the concepts we've discussed this week which is short and long run production and cost)?
In late 2010 CEMEX company's fourth-quarter loss widened to $574 million, from a loss of $209 million a year earlier. What should CEMEX do in relation to HRM and operational issues namely talent management and retention?