McDonald's Variable Costs Fixed Cost Total Cost Price 5,000 5,000 Total Revenue Profit Marginal Costs Marginal Revenue Quantity 1,000 500 5,500 4.0 4000 -1,500 xxx Xxx 2,500 4,000 9,000 1,000 1,400 2,400 3,400 6,000 6,400 3.5 8750 2,750 0.3 3.17 5,000 3.0 12000 5,600 0.3 2.17 5,000 5,000 5,000 5,000 7,400 2.0 18000 10,600 0.2 1.20 13,000 4,600 8,400 15,000 1.0 13000 0.3 -1.25 20,000 10,000 0.5 10000 -5,000 0.9 -0.43 45,000 31,250 36,250 0.3 13500 -22,750 0.9 0.14

McDonald's Variable Costs Fixed Cost Total Cost Price 5,000 5,000 Total Revenue Profit Marginal Costs Marginal Revenue Quantity 1,000 500 5,500 4.0 4000 -1,500 xxx Xxx 2,500 4,000 9,000 1,000 1,400 2,400 3,400 6,000 6,400 3.5 8750 2,750 0.3 3.17 5,000 3.0 12000 5,600 0.3 2.17 5,000 5,000 5,000 5,000 7,400 2.0 18000 10,600 0.2 1.20 13,000 4,600 8,400 15,000 1.0 13000 0.3 -1.25 20,000 10,000 0.5 10000 -5,000 0.9 -0.43 45,000 31,250 36,250 0.3 13500 -22,750 0.9 0.14

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Jenni has decided to start knitting during quarantine. She decides to open an etsy shop where she can sellknitted hats. Each hat costs $4.50 in materials to produce, in addition to the fee of $150 to license her shop.She plans on selling each hat for $24.50. (a) Write the cost, revenue, and profit equations for Jenni’s hat buisness. (b) Determine the profit if 13 hats are sold.(c) Determine thebreak-evenpoint.
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Please help 1- Joes explicit costs are ….. ' 2- Joes implicit costs are…. 3- Joes economic profit in the first year is ….. dollars. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.
Q Total Cost ATC AFC MC 0 10 - - - 10 12 12/10=1.2 10/10=1 12-10/10-0=0.2 20 16 16/20=0.8 10/20=0.5 16-12/20-10=0.4 30 26 26/30=0.867 10/30=0.333 26-16/30-20=1 40 38 38/40=0.95 10/40=0.25 38-26/40-30=1.2 50 75 75/50=1.2 10/50=0.2 75-38/50-40=3.7 60 120 120/60=2 10/60=0.167 120-75/60-50=4.5 If the market price is $1.00 then what output or q (in the units of 10) is the most profitable production level?
Q Total Cost ATC AFC MC 0 10 - - - 10 12 12/10=1.2 10/10=1 12-10/10-0=0.2 20 16 16/20=0.8 10/20=0.5 16-12/20-10=0.4 30 26 26/30=0.867 10/30=0.333 26-16/30-20=1 40 38 38/40=0.95 10/40=0.25 38-26/40-30=1.2 50 75 75/50=1.2 10/50=0.2 75-38/50-40=3.7 60 120 120/60=2 10/60=0.167 120-75/60-50=4.5 What output or q (in the units of 10) is the most efficient production level?
Output from a process contains 0.02 defective unit. Defective units that go undetectedinto i nal assemblies cost $25 each to replace. An inspection process, which would detectand remove all defectives, can be established to test these units. However, the inspector,who can test 20 units per hour, is paid $8 per hour, including fringe benei ts. Should aninspection station be established to test all units?a. What is the cost to inspect each unit?b. What is the benei t (or loss) from the inspection process?