MarginalPriceQuantity SoldRevenueCostMarginal Average TotalCost$1014$1015(A)$8$14$1016(B)$7$9.19$1017(C)$9$8.76$1018(D)$12$8.94Use the table above to answer the following question. If the firm decides to produce 15 units,what is the firm's profit? (note: we always are assuming economic profit).

If the firm decides to produce 15 units ,the total revenue will be 15x10=150 the total cost of…

Answered: Marginal Price Quantity Sold Revenue…

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

Chapter22: Getting Divisions To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 3MC

See similar textbooks

Similar questions

The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for total cost, average variable test, average total cost, and marginal cost.
What are diminishing marginal returns as they relate to costs?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Connor produces and sells Thirium (a type of mineral). When Connor produces 10 containers of Thirium, the total cost is $125. When Connor produces 11 containers of Thirium, the total cost is $160. What is Connor's marginal cost of producing the eleventh container of Thirium? Select one: a. $40 b. $160 c. $35 d. $125 e. $25
For Problems 15-17It costs a company $500,000 to produce 1,000 treadmills. The company’s cost will be $500,350 if it produces an additional treadmill. The company is currently producing 1,000 treadmills. A) What is the firm’s average cost for 1,000 treadmills? B) What is the firm’s marginal cost for the 1,001 treadmill? C) A customer is willing to pay $200 for the 501st treadmill. Should the company produce and sell it? (Enter yes or no and briefly explain your reasoning)
A company that produces cleaning products is considering a proposal to begin production of a new detergent that would cost $1 a bottle to make and distribute, and retail for $2.19 a bottle. Fixed cost for the operation would be $3000 a week. Assume that all output can be sold. (a) What would be the total cost, revenue and profit for a weeklyvolume of 10,000 bottles?
30- A graph represented by a straight line parallel to the output of the X-AXIS is an image of which classification of cost? a. Marginal cost b. Production cost c. None of these d. Total fixed cost
Stuey the VP for advertising at the Meg-low Mart is trying to sell Meg-Low Mart Body Spray for $1.99 per unit. His variable cost for each unit $0.75. Knowing their AED is .31 calculate the optimal amount that should be spent in advertising.
The same firm produces 500 lawnmowers per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15. Raw materials are ordered weekly and they costs $50 for every unit produced. The weekly cost of the rent payment for the factory is $2,250. Lawnmowers sell for $100. What is the average total cost and the profit margin? A. $58.50 and 17.7%. B. $58.50 and 27.4%. C. $78.50 and 21.5%. D. $58.50 and 41.5%. E. $78.50 and 27.4%.
You run a school in Florida. Fixed monthly cost is $5,837.00 for rent and utilities, $6,127.00 is spent in salaries and $1,459.00 in insurance. Also every student adds up to $103.00 per month in stationary, food etc. You charge $684.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,946.00, salaries to $6,128.00 and insurance to $2,040.00 per month. Variable cost per student will increase up to $166.00 per month. However you can charge $1,042.00 per student. How much do you currently charge per student? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
A company sells watches for $1,500. The unit variable cost is $500. Fixed manufacturing costs tota $50,000 and fixed selling and administrative costs totals $25,500. Calculate the CM per watch Calculate the B/E in unit and dollars per watch Calculate the MOS in units and dollars if the company sold 115 watch Calculate the number of watches the company must sell to earn a profit of $90,000 Draw graph showing clearly the SP, VC, FC, B/E. MOS

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

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

Publisher:

Cengage Learning

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

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

Publisher:

Cengage Learning

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

SEE MORE TEXTBOOKS