B. suppose that the steel firms costs are shown below. Fill the table.QTFCTVCTCMCTRMRPROFIT/LOSS40010040050200400100300400130400400180500400220600400350700400450400800price of steel is P150/unit600

TC=TFC+TVC Fixed cost is independent of output produced whereas variable cost with the level of…

Answered: TFC TVC TC MC TR MR PROFIT/LOSS 400 100…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

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Similar questions

Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent for 30,000 per year. What was the films economic profit last year?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
What is a production technology?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders.
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
How does fixed cost affect marginal cost? Why is this relationship important?
Zodiac Furniture is considering the production of anew line of metal offi ce chairs. Th e chairs can be producedin-house using either process A or process B. Th e chairs canalso be purchased from an outside supplier. Specify the levelsof demand for each processing alternative given the costs in thetable. Fixed Cost Variable Cost Process A $20,000 $30Process B $30,000 $50Outside Supplier $0 $50
Problem 6Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its topselling product, almond croissants. The annual demandfor almond croissants is 12,000 units. The setup costs fora production run of the croissants is US$15. The holdingcost per unit per year is US$0.50. Production is mostefficient when 80 croissants are produced per day. Thecompany operates 300 days during a year.a What is the economic production quantity (EPQ)?b How many production runs will there by per year?c What is the maximum inventory level?d What is the total annual cost (in US dollars)?e What is the length of a production run in days?
What’s the the total fixed costs 8 10 12 Or 15
. Joe quits his computer programming job, where he was earning a salary of $60,000per year, to start his own computer software business in a building that he owns andwas previously renting out for $24,000 per year. In his first year of business he has thefollowing expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000.Find the accounting cost and the economic cost associated with Joe’s computer softwarebusiness.

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