Suppose a fim has hwo plants with the folowing coets ParttC,-at-1000 1.000.000 and Part 2 -15-s00g -2.000.00 At what output is the verage.cost minimized in each plant? Plant 1 average costs are minimized at output - (Enter a numeric reponse using an integer)
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- A company estimates that the total revenue, R, in dollars, received from the sale of q items is ? = 3000 + ln(1 + 1000?^3) and the marginal cost is ??(?) = 0.05?^2 − 1.6? + 50. Calculate and interpret the marginal profit if q = 100.Suppose ADJ Corporation's break-even sales volume is $450,000 with fixedcosts of $200.000.(a) Compute the contribution margin percentage.(b) Compute the selling price if the variable costs are $ 12 per unit.The Rocky Mountain Publishing Company isconsidering introducing a new morning newspaper inDenver. Its direct competitor charges $0.25 at retailwith $0.05 going to the retailer. For the level of newscoverage the company desires, it determines the fixedcost of editors, reporters, rent, pressroom expenses,and wire-service charges to be $300,000 per month.The variable cost of ink and paper is $0.10 per copy,but advertising revenues of $0.05 per paper will begenerated. To print the morning paper, the publisherhas to purchase a new printing press, which will cost$600,000. The press machine will be depreciatedaccording to a seven-year MACRS class. The pressmachine will be used for 10 years, at which time itssalvage value would be about $100,000. Assume 300issues per year, a 40% tax rate, and a 13% MARR.How many copies per day must be sold to break evenat a retail selling price of $0.25 per paper?
- Given the following cost function:TC = 1500 + 15Q – 6Q2 + Q3i.Determine the total fixed cost for producing 1000 units of output and 500 units of output.ii.What is AFC at:a) 1000 units of outputb) 500 units of outputiii.Determine TVC, AVC, MC and AC at 50 units of output.Given the following cost function:TC = 1500 + 15Q – 6Q2 + Q3i. Determine the total fixed cost for producing 1000 units of output and 500 units of output.ii. What is AFC at:a) 1000 units of outputb) 500 units of outputiii. Determine TVC, AVC, MC and AC at 50 units of output.the firm faces additional shipping costs. In particular, it incurs a per unit cost of 10 for shipping output from Factory 1 to the market and a per unit cost of 5 for shipping output from Factory 2 to the market. How much does it charge per unit of output?
- . Given the following fixed and variable costs and the volumes, calculate the total andunit costs.A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to solve, If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year? (a) 12,000 (b) 10,000 (c) 16,000 (d) 18,000 (e) 5,143. Select the closest answer.A. Will you invest a project that requires a $ 200,000 today and returns $50,000 at the end of the first year, $70,000 at the end of the second year and $100,000 at the end of the third year? Assume a discount rate of 5%. . B. An economist estimated that the total cost function of a single - product firm is TC= 125+5Q+3.5Q^2. Determine the average variable cost (AVC) of producing the 5 units. C. An economist estimated that the total cost function of a single -production firm is TC=125+5Q+3.5Q^2. Determine the marginal cost (MC) of producing the 5th unit? No derivative is required for this question
- PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? What is the shutdown price and quantity for this firm? Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above. Given the market price of Pak$ 50 how many units should the firm produce? how many firms are competing in this market in short-run? How many firms will be in the industry in the long-run? How do you interpret the profit or loss condition of PakPerfect? Use a two-panel graph of the Market and…Given the information that follows: Salefixed s = 750,000; explicit costs = 450,000; return you could have earned by investing your money elsewhere = 50,000; wages that you and your family members could have earned doing the same work for another firm = 70,000. The economic cost is equal to;