Short answer Explain the fixed cost and the variable cost with examples

Q: Cups of FroYo Workers Labo r Cost Other Variable Input Variable Total Average Average Average Cost…

A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…

Q: Exhibit 7-6 Output Rent Cost of Materials Labor $200 10 200 100 200 250 100 20 200 200 30 200 300 40…

A: Fixed costs are those costs that a company has to incur irrespective of any business activity like…

Q: Why the average fixed cost curve does not touch the output axis ? YA AFC Output Cost

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Q: Distinguish between/ among a.  The short run total fixed cost, total variable cost and total cost…

A: Cost refers to the value of the resource(s) that gets exhausted in the process of production or…

Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…

A: We have blank for MC at q=5.

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Diminishing Marginal product means that the increase in the output from the additional labor…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

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Q: Nimbus Ltd. makes brooms and then sells them door to door. Here is the relationship between the…

A: The cost table, a) Marginal product = Change in total product/ Change in the number of workers At L…

Q: L        Q TVC TC AVC AFC ATC MC   4      20               5      26               6      30…

A: Total cost is the sum of fixed and variable costs. Average cost is the per unit cost of output.…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

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Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

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Q: Brenda's candle factory rents equipment for making candles and hires students. Brenda pays $60 a day…

A: Average fixed cost = Total fixed cost / Total product Average variable cost = Total variable cost /…

Q: In the short run marginal cost crosses average total cost at the minimum of average total cost True…

A: According to the given question Simply a Short run period is that period in which the other factors…

Q: Use the following information to answer the question Quantity (number ofFixed Variable Total…

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Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…

A: Marginal cost is the measurement of change in the total cost with the increment of one unit of…

Q: The shape of the Total Product curve on the production side gives us the shape of which curve on the…

A: The cost of producing a firm's output depends on the number of labor and physical capital which are…

Q: What are Fixed Costs?

A: A company mainly faces two type of costs known as fixed cost and variable cost. These two costs are…

Q: Illustration 1. Total Fixed Cost is 90, complete the following table: Average Variable Cost (E)…

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Q: Which of the following is not a variable cost at the sandwich shop? O Cost of labor

A: We have to find which is not a variable cost at the sandwich shop.

Q: Distinguish between the fixed costs and the variable costs?

A: Cost represents the value of goods and services which are charged by the producers and the amount…

Q: A. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing…

A: Answer A. TVC + TFC = TC Both TC and TVC run in concurrently. The x-axis of TFC is parallel. At zero…

Q: What is the shape of the average variable and average total cost curves and average  fixed cost?…

A: One of three average curves is the average variable cost curve. The average variable cost curve is…

Q: Graph the following:  The Marginal Cost Curve crosses the Average Total Cost curve and Average…

A: The figure illustrates the MC, ATC and AVC.

Q: Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: The marginal cost of production is the incremental cost incurred when an additional unit of a good…

Q: Define and explain the difference between short run and long run and identify the relationship…

A: Short-run average cost curves: In the short run, the shape of the average cost curve is 'U' shaped.…

Q: Units of Fixed Variable Total Marginal Average Output Cost Average Variable Cost Total Cost Average…

A: Total cost is the sum of fixed and variable costs. Marginal cost is the addition to the total cost…

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: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Diminishing Marginal product means that the increase in the output from the additional labor…

Q: Which of the following is the extra, or additional, cost of producing one more unit of output?…

A: While producing the output, the producers majorly incur two kinds of costs, for example, the…

Q: When examining the costs faced by a business, explain how economists distinguish between the short…

A: First part The contrast between the short and long runs is critical in economics. It turns out that…

Q: Explain Fixed costs versus variable costs and give an example?

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: Use the following information to answer the question Quantity (number ofFixed Variable Total Margina…

A: Cost refers to all the expenditure and expenses that incur in a production process of goods and…

Q: Mention and explain the cost components certainly do not exist in the long run?

A: The cost components include fixed costs and variable costs.  Variable costs are the costs which vary…

Q: Use the table to answer the uestion below: Quantity          Total Cost  0…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: Sue's Surfboards hires workers at $500 a week. Its total fixed cost is $1,000 a week. The table…

A: Solution: Given: Total Fixed Cost of surfboard (per week) = $1000 This cost will be independent of…

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Fill in the column of marginal products. b. A worker costs $100 a day, and the firm has fixed costs…

A: MPn =TPn - TPn-1 ATC = TC / Q MCn = TCn - TCn-1

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A: Ans.  Quantity (number of units) Fixed costs       ($) Variable Costs           ($) Total…

Q: When marginal cost equals average toal cost, average total cost, (Click for List) rising at a…

A: Marginal cost is change in total cost divided by change in output. Average cost is the cost per unit…

Q: a. Fill in the blanks for the table given below by calculating the average variable cost, average…

A: Average variable costs Average variable costs are found by dividing total fixed variable costs by…

Q: Q. %3D W=r=| C= LtK What is the LoNG Run:TC, AC, MC TOTAL COST Average Total cost Marginal lost

A: Production Function : Q=L1/2K1/2 Cost of Labor=wage=1 Cost of capital=rental rate=1 Cost=wL+rK…

Q: Which of the following is not a variable cost at the sandwich shop? Cost of labor O Cost of tomatoes…

A: Definition: Variable costs are costs that depend on the number of goods or services it produces. An…

Q: Give some examples of the variable costs?

A: Variable Costs(VC) are those costs that varies with the quantity of output produced. If Q is the…

Q: how do you find total fixed cost?

A: Sellers must incur costs while producing goods and services by making a variety of factor payments…

Q: Differentiate between Fixed and Variable Costs?

A: Difference between fixed and variable costs Fixed Costs  Variable Costs 1. They are incurred on…

Q: Explain the difference between the short and the long run in production

A: The function that depicts the existence of technological relation between quantities of the good…

Q: Graph the following:  The average fixed cost curve never intersecting with either the horizontal or…

A: Average fixed cost is the cost incurred by the firm as unit of output. AFC = FC/Q Where, FC = fixed…

Q: a. Why is the gap or difference between average total cost and average variable cost larger at…

A: Cost is a metric of the possibilities foregone when one product or task is chosen over another.