Answered: The following cost data are for a firm…

The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700 What is the firm's average variable cost at an output of 5 units? $30 $60 $120 $140

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 6SQP

See similar textbooks

Related questions

Q: : The total variable cost of firm X is 100 and its total fixed cost is 20 TL. The firm produces 40…

A: Given information: TVC = 100 TFC = 20 Q = 40 We need to find AFC The formula for AFC = TFC÷Q

Q: Question 22.22. The following cost data are for a firm in the short run: Output Total Cost 0…

A: The average variable cost (AVC) is the total variable costs per unit of output. Thus, AVC=TVCQ Where…

Q: The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of$1,000.…

A: The data presented in the above question is as follows:- Total cost = $4000 Total variable cost =…

Q: Assume that the situation can be expressed as a linear cost function. Find the cost function.…

A: The total cost function comprises of variable costs and fixed costs. The fixed costs remain the same…

Q: The total cost of producing 25 tons of butter is 45000. If the average variable cost is $775, then…

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: If a store owner increases the size of his store producing more quantities of his product, and…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

Q: A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it…

A: Average total cost is total cost divided by total output produced, ATC = TC / Q Marginal cost is…

Q: Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The daily cost function for producing x printers for home computers was determined to be C(x) = x²…

A: Given TC = C (x) = x2 + 8x + 6000

Q: A company's cost function is given as: TC=25+30Q+0.2Q^2 What is the equation for the company's…

A: In the short run, a firm incurs two types of cost: fixed cost and variable cost. Fixed cost (FC):…

Q: Calculate the level of average cost to produce 39 units of output if the total cost function is…

Q: Quantity (boxes of cakes) Total variable cost (dollars) 0 0 1 20 2 35 3 50 4 75 5 110 6 160 The…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is independent of quantity.…

Q: A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100, average…

A: Given: Total Cost = $1000 Fixed Cost = $100 Output = 300 units.

Q: Quantity Total Fixed Cost 0. 60 60 60 115 4 60 130 6. 60 160 8. 60 200 10 60 250 Using the above…

A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…

Q: The fixed costs of a firm are $100. When the firm produces one unit the total cost is $150. The…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: If the short-run total cost function for a firm is TC = 3,000+100Q, Given: TC = 3,000 + 100Q TC =…

A: Marginal cost (MC) = dTC/dQ = 100

Q: Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of…

A: Total cost is the sum of all costs incurred during the production process. The total cost can be…

Q: referring to the cost table above, what is the average variable cost if quantity produced equals 400…

A: Average variable cost varies with the output produced

Q: A business incurs the following costs per unit: labor $125/unit, materials $45/unit, and rent…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost.A).Total variable…

Q: At Jody's bakery they are currently selling 400 loafs of bread. It cost them $4,000 to buy an oven,…

A: Variable cost: A variable cost is a corporate expense that changes in proportion to how much a…

Q: A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100, average…

A: Cost: It refers to the value of goods or services in the terms of money.

Q: In the short run, if average variable cost equals $50, average total cost equals $75, and output…

A: The total fixed cost refers to those costs that remain the same regardless of the level of…

Q: For Questions 24 to 28, consider the following total cost function: TC = 0.2q° + 6q + 50 where TC is…

A: In a market, average total cost, marginal cost and other types of cost can be determined with the…

Q: The average variable cost curve and average total cost curve tend to converge as output rises…

A: ATC = TC/Q AFC = TFC/Q AVC = TVC/Q TC = TFC + TVC TFC = TC – TVC AFC = AC - AVC

Q: Use the following scenario to answer the questions that follow. Steve owns a bike store. His total…

A: (A) Variable cost refers to the cost that does change with change in level of output.

Q: The Mexican company generates a production per unit of time, each unit has a fixed cost of $40.00.…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: A firm produces 400 units of output at a total cost of $1.000. If fixed costs are $200, average…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: A business incurs the following costs: • Labor: $120/unit • Materials: $45/unit • Rent:…

A: Total fixed costs are the costs that are unavoidable and have to paid irrespective of the level of…

Q: The total cost function of a firm is:- 23Q? - 13Q + 40 Find the average cost function

Q: Construct the cost schedule using the data. below for a firm operating in the short run. Graph…

A: Total cost is the sum of all the cost that incurred by a firm in order to produce output. The…

Q: Question 7 Short run costs A firm's short-run cost function is C(q) = 10q - 12q? +0.5q+ 400 1. Find…

A: Here, a firm's short-run cost function is given as: C(q)=10q-12q2+0.5q3+400

Q: Total variable cost of the firm is $20 and the total fixed cost is $100 Calculate the total cost…

A: Answer: Given, Total variable cost = $20 Total fixed cost = $100 Total cost = Total variable cost +…

Q: A leather coat manufacturer can produce 150 pieces of leather coats in a week at a total cost of…

A: The following cost calculations are done below:

Q: Consider a small photography studio with 8 workers and 5 The total cost of labor and capital is…

Q: Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals A.…

A: According to the given questions The short run cost function is a function which simple word is said…

Q: Calculate average variable Cost if total variable cost is $1000 and output is 20

A: The average variable cost is the cost per unit of output. Total variable cost is the total…

Q: How do you solve this and can you show me step by step?

A: The cost function of two plants can be expressed as follows.

Q: The total cost function of firm is TC = 60 + 6q. If the firm produce 10 units per day then calculate…

A: Below is the given function: Total cost, TC = 60 + 6q Quantity = 10 units per day

Q: Consider a company that has fixed costs of $6,700 and a marginal cost of $26 per item. What is…

Q: What will be the value of average fixed cost if total fixed cost is $350 and the output is 50

A: Given information: Total fixed cost: $350 Output: 50 To find: Average fixed cost

Q: A garment factory has total fixed costs of $300,000 per year. The firm’s average variable cost is…

A: The provided information are: Total fixed cost = $300000 Average variable cost = $80

Q: The differences between total costs and variable costs is given by sunk costs

A: ANSWER STEP-1 The Differences Between Total Costs And Variable Costs Is Given By Sunk Costs True…

Q: Which of the following is most likely to be a variable cost for a firm? an annual payment for…

A: Fixed cost does not depend on production whereas variable cost does. Variable cost increases with…

Q: Given below is a cost schedule of an automobile company operating in Kota Kinabalu. Total Product…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Question 22.22 The following cost data are for a firm in the short run: Output Total Cost 0 $400…

A: Average variable cost is the total variable cost per unit of output produce by a producer or firm.…

Q: A firm can build a plant of three different sizes. The short-run average total cost curves of each…

A: Answer to the question is as follows :

Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700

What is the firm's average variable cost at an output of 5 units?

$30

$60

$120

$140

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.