QUESTION 9 If the marginal cost is above the average cost, the average cost must be: Oa. increasing. b. decreasing. Oc. constant. d. Not enough information
Q: If marginal cost is above average variable cost, then Select one A average variable cost is constant…
A: Marginal Cost (MC) is the change in total cost for an additional unit of output produced. Average…
Q: Quantity Average Fixed Cost Average Total Cost 1 140 2 75 3 60 4 55 5 54 6 20 60 Short run…
A: Diminishing returns to production starts where marginal cost increases with an increase in output,…
Q: 1. Based on the above table, does the firm operate in short run or long run?WHY? 2. Based on the…
A: The missing entries in the cost table of the firm have been computed as follows: Quantity Fixed…
Q: 2. You are the manager of production at a firm that sells high performance road bikes. Your firm has…
A: Answer: Quantity Average cost (AC) Total cost= AC*Quantity Marginal cost 548 bikes $245…
Q: 39. What do you call that COST which is nat usually thought of at a coST? A. Explicit Cost B.…
A: When making any activity, there used to be some cost associated with it thay is classified into…
Q: 3. For the technologies y=min =+x; compute: and a) the total cost and the cost of production of 1…
A: The total cost function is a relationship between total cost and output level and input prices. It…
Q: Question 4 Charlie Co. sells pastries and its production and cost table is given below. A worker…
A: Marginal Product = Change in Total Product / Change in Labour Marginal Cost = Change in Total Cost /…
Q: (d) The long run average cost curve is U shaped because up to a certain point you have excess K/L…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: George’s T-Shirt Shop produces 5,000 custom printed T-shirts per month. George’s fixed costs are…
A: In production activity, break-even point is the point where the firm is earning zero profits. That…
Q: 22) Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Assignment 1. Find the value of A,B,C,D & E. Add $8 with FC. New FC=$10, now assuming quantity and…
A: The variable cost is the cost that varies with change in the output. The fixed cost is the cost that…
Q: a. Calculate the marginal cost and average variable cost for each level of production. b. How much…
A: A perfectly competitive market is a hypothetical market which shows following characteristics:…
Q: QUESTION 20 Solve the problem. 750,000 + 0.55x The average cost per unit, y, of producing x units of…
A: The given average total cost (y) function, y= 750,000+0.55xx The ATC should not exceed $8.05. So,…
Q: 3. As marginal cost rises, average variable cost necessarily rises. True False
A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…
Q: 1. The cost of producing 5 gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5…
A:
Q: iven - p=35−0.5QTC=0.5Q2+5Q D)What are the break-even quantities? E)What quantity minimizes total…
A: Given Demand function: p=35-0.5Q ......... (1) Total cost function: TC=0.5Q2+5Q .......... (2)…
Q: QUESTION 10 If the marginal cost is below the average cost, the average cost must be: a. increasing.…
A: Solution for Q10 :- For answering this question, we have to look into the relationship between…
Q: 6. If the Marginal Cost for a product is found to be MC = 8x + 60, and the Marginal Revenue is given…
A: We are going to use Profit maximization method to answer this question. Use differentiation and…
Q: total cost is $ c. At the optimal level of output, total revenue is $ and profit is d. If the…
A: whether it is perfect competition or imperfect competition market the condition for equilibrium is…
Q: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Confetti Bakery sells bread, cake, and other baked goods. After analyzing their production and…
A: For production of goods and services, firms hire factors of production from the household sector in…
Q: The cost of producing 5-gallon water bottles is given by: C(q) = 0.005q + 2q + 1000. If 2000…
A: Given: C(q) = 0.005q + 2q + 1000. Quantity (q) = 2000 units
Q: 1. Find the total cost if marginal cost MC = 4 q+ 15 and fixed cost FC = 100.
A: total cost, in economics, the sum of all costs incurred by a firm in producing a certain level of…
Q: Which of the following is not a part of the short run marginal costs for a pharmaceutical company?…
A: Large manufacturing equipment is such type of input that is variable only in the long run. It is…
Q: Number of Cakes VC MC AVC FC TC ATC 50 1 30 2 50 25 4 155 Table 8.3 Table 8.3 presents the cost…
A: Marginal cost is the cost of producing an additional unit of output, If candy produces 3 cakes then…
Q: 38. Graphically, where is average fixed cost (AFC)? It is below price but above average variable…
A: "Cost refers to the value of money that is spent on production or other economic activities." "Fixed…
Q: 8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost function is…
A: A cost function is being used in order to chart how the production expenses would change at…
Q: When a toy factory makes x dolls a day their total cost is C(x) = 50 + 9x + 0.02x² dollars. What is…
A: ANSAverage Cost (AC) is the per unit cost of the output. It is obtained by dividing the Total Cost…
Q: 3. As marginal cost rises, average variable cost necessarily rises. * True False
A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…
Q: (a) How can you tell if these cost curves are for the short run or the long run? (b) What does the…
A: Total costs TC equals TFC plus TVC. Total fixed costs (TFC) are the total payment of the firm on…
Q: Quantity (number ofFixedVariable Total Marginal Costs Costs Costs Costs ($) units) ($) ($) ($) 1 10…
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: 6) If a firm produces 100 units of output and has an average total cost of $6 then what is their…
A: Average total cost refers to total cost divided by a total unit of output produced. It is the sum of…
Q: 3. For the technologies y=min- ,4x, } and y=- +x, compute: 4 a) the total cost and the cost of…
A: TC = total cost MC= marginal cost AC= average cost. The prices of inputs are (4,6)
Q: Number of Cakes VC MC AVC FC TC ATC 50 1 30 2 50 25 4 155 Table 8.3 Table 8.3 presents the cost…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: 1. Visualizing average costs and marginal costs as a slope? Take an example 2. Long run average…
A: (1) Average cost is the total cost upon quantity. Marginal cost is the cost of producing one more…
Q: The concept of marginal cost is best described by which of the following? Mr. Creosote meets a wafer…
A:
Q: How profit is different from the incorporating normal profit and when the normal profit is into…
A:
Q: roduction, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the av…
A: The given table is completed as follows:
Q: 2) If your ATC = $5 when quantity is 10, then what is your total cost?
A: The total cost of a firm is actually a summation of fixed cost and variable cost. Variable cost…
Q: tion 32 ne vertical distance between average variable cost and average total cost represent 2…
A: OPTION A - AFC ATC = AFC + AVC AFC = ATC - AVC AFC is always positive. AFC keeps on decreasing as…
Q: Marginal cost is given by 30 + 20Q- 12Q2. Fixed cost is 100. What is the average cost? 30 OA 3Q +…
A: Answer- Need to find - Avg. cost Given in the question- Marginal cost = 30 + 20Q - 12Q2 Fixed cost…
Q: OUTPUT TOTAL COST 40 1 49 57 64 4 70 77 6. 85 : The TVC of producing 4 units of output is : The AFC…
A: "The total variable cost represented by TVC indicates the total of all the variable costs of inputs…
Q: George’s T-Shirt Shop produces 5,000 custom printed T-shirts per month. George’s fixed costs are…
A: Given information-The producer initially produces 5,000 T-shirts. The fixed cost is equal to…
Q: Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a…
A: The complete table is given below: The table can be completed by using the following formula: MP =…
Q: If short run total costs are 2q? + 50q + 50, and output is 15, average variable costs will be a. 80.…
A: The markets are the place where the buyers or consumers of various goods and services tend to meet…
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- Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?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.Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?
- Number of Cakes VC MC AVC FC TC ATC 0 50 1 30 2 50 3 25 4 155 Table 8.3 Table 8.3 presents the cost schedule for Candy's Cakes. If Candy produces three cakes, Candy's marginal costs are: A. $0 B. $25 C. $41.67 D. $75Consider the following cost information for a pizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $0I 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria's fixed cost?b. Construct a table in which you calculatethe marginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using the inforpmation on variable cost. What is the relationshipbetween these sets of numbers? Explain.26. The cost that vary accordingly to the volume of output is _____________. a. Fixed cost b. Both fixed and variable costs c. All the options d. Variable cost
- A firm is producing 20 units with an averagetotal cost of $25 and a marginal cost of $15. Ifit increases production to 21 units, which of thefollowing must occur?a. Marginal cost will decrease.b. Marginal cost will increase.c. Average total cost will decrease.d. Average total cost will increase.(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…Output AFC AVC ATC MC 0 $ --- $ --- $ --- $ --- 1 300 100 400 100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 82 5 60 80 140 108 6 50 90 140 140 7 43 103 146 182 8 38 119 156 234 9 33 138 171 283 10 30 160 190 361 How much is fixed cost (TFC)? The total fixed cost is 300. For the following questions, first check: a) is P greater than or equal to, AVC at any level of output? If not, do not produce. You will lose only your fixed cost (TFC)…
- Consider the following cost information for apizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $ 01 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria’s fixed cost?b. Construct a table in which you calculate themarginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using theinformation on variable cost. What is therelationship between these sets of numbers?Explain.Jeremy worked at a bank with a monthly salary of $1,500. He decided to quit his job and open a bookstore inhis neighborhood. He now pays $500 in rent, $80 in utilities and $120 in wages every month. He also paysthe publisher $5 per book sold. This month Jeremy sold 100 books at the price of $30 per book.a. What was the total revenue this month? Calculate this month’s explicit fixed cost, the variable costand the total cost.b. How much accounting profit did Jeremy make?c. How much economic profit did Jeremy make?d. If Jeremy had not quit his job at the bank, he could have been promoted and got a pay raise of 30percent. How would this affect his accounting profit and his economic profit?37- If firm X produces 20 units of product with a total cost of 100, what is its average cost? a) 2nd B) one NS) 120 D) 5 TO) 80