Q: TC = TVC + TFC TVC = AVC * q TFC = AFC * q TC ATC = AFC + AVC TFC AFC = TVC AVC = ATC MC = Да
A: The cost of production is the summation of costs incurred in the process of producing the commodity.…
Q: a) Fill in the table above b) Does this firm operate in short run or long run? Explain why? c)…
A: 1) TCn = TCn-1 + MCn 2) MCn = TCn -TCn-1 3) TC = TFC + TVC 4) AFC = TFC / NUMBER OF UNITS 5) ATC =…
Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…
A: Marginal cost (MC) is that the cost of manufacturing an additional unit of output.Average variable…
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A: The firms incur a certain amount of cost to produce a certain amount of output. Production cost is…
Q: Figure 1 shows price, marginal cost and gavecege.cost.cUDces for a fioD- Figure 1 Costs MC AC (RM)…
A: Since you have posted muti-subparts questions, as per answering guidelines we will solve the first 3…
Q: a. In the short run, is he maximizing his profits? Why? b. Given the conditions listed above, what…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 2. The following table depicted a computer manufacturer's total cost of producing computer: Quantity…
A: In its most basic form, total cost (TC) refers to all of the costs associated with producing…
Q: Consider the following cost information for a pizzeria: a.What is the pizzeria's fixed cost?…
A: The total cost is the total expenditure incurred to the business during the production process of a…
Q: A firm is producing the profit-maximizing amount of output when it is producing where its curve…
A: The total cost is the sum of fixed cost and variable cost. The fixed cost is the cost of fixed…
Q: Assignment 1. Find the value of A,B,C,D & E. Add $8 with FC. New FC=$10, now assuming quantity and…
A: The variable cost is the cost that varies with change in the output. The fixed cost is the cost that…
Q: The formula for total fixed cost is Select one O A TFC TVC-TC O B. TFC-TC/TVC C TFC=TC-TVC. O D…
A: Total Fixed cost (TFC) is the cost that is incurred on fixed factors and does not change with the…
Q: a. Calculate the marginal cost and average variable cost for each level of production. b. How much…
A: A perfectly competitive market is a hypothetical market which shows following characteristics:…
Q: The table shows a firm's total and marginal costs. Output Total cost ($) Marginal cost ($) 1 200 20…
A: Marginal cost=Change in Total CostChange in outputAverage Fixed cost=Fixed CostQuantityTotal…
Q: Number of Cakes VC MC AVC FC TC ATC 0 50 1 30 2 50 3 25 4…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: (The Short-Run Firm Supply Curve) Use the following datato answer the questions below:…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: Total Total Average Average Dutput (Q) Fixed Variable Total Variable Total Marginal Cost Cost Cost…
A: Note: You have uploaded more than one question at a time. Hence, we shall solve only the first one…
Q: 2.7 The following is a total cost curve. Sketch the correspond- ing marginal cost curve. If the…
A: The marginal cost (MC) represents the additional costs incurred in producing one extra unit of the…
Q: 12. Joe decided to go into business giving dance lessons. He kept poor records because he was so…
A: AFC is the average fixed cost of production which remains fixed along the production process. VC is…
Q: Fill in the blank and explain the choice of correct answer. When the marginal…
A: The markets are the place where the buyers of various goods and services and the sellers, or the…
Q: Required a. How much is the fixed cost to produce the natural-organic oil? b. How many barrels of…
A: The fixed cost does not change with change in the level of output. The variable cost changes with…
Q: O See Hint Claire's dog-walking service is a profit-maximizing. competitive firm.Claire walks dogs…
A: The firm is given to be a profit-maximizing one. The firm decides to operate or shut down in the…
Q: Figure 12-18 Revenue MC and cost (dollars per unit) $40 MR ATC AVC 24 C 20 14 12 8 a 55 100 150 200…
A: A perfect competition is a market that has a large number of buyers and sellers selling homogeneous…
Q: Draw the marginal-cost and average-total-cost curvesfor a typical firm. Explain why the curves have…
A: Average-Total-Cost (ATC): Average total cost refers is cost of production of per unit output that is…
Q: a. What is Mr. Leung’s fixed cost? b. For each level of output, calculate the variable cost (VC).…
A: Fixed cost = cost when output is zero TVC = TC – FC ATC = TC / Qty AFC = FC / Qty AVC = AVC / Qty MC…
Q: MC Price ATC 9. AVC 2 10 15 Quantity
A: The short-run is the time period where at least one factor is fixed and others are variable. The…
Q: Meanings: TFC TVC - Total Variable Cost TC - Total cost - Tatal Fixed cost AFC average Fixed Cast…
A:
Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) Calculate Total…
A: Broadly, Total Cost is the summation of Total Fixed Cost and Total Variable Cost. TFC is the fixed…
Q: Calculate economic and accounting profit, and explain the importanceof the difference.
A: Profits are the excess of the revenue receipts over the firm’s total spending incurred during a…
Q: total revenue (TR) and total variable cost
A:
Q: 2 Complete the following table Price Output (0fied cost Variable co Revenue Total Cos Marginal…
A:
Q: Quantity (number ofFixedVariable Total Marginal Costs Costs Costs Costs ($) units) ($) ($) ($) 1 10…
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: KK Enterprises' average total cost curve (ATC) has shifted up, but its average variable cost curve…
A: Any change in Fixed Cost does not affect the Variable Cost and Marginal Cost. Therefore, a tax on a…
Q: Assume that the cost data in the following table are for a purely competitive producer:
A: In perfect competition, there is a large number of buyers and sellers and sellers are selling…
Q: SE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS).…
A: The maximizes profits where the MR= MC. The MC curve cuts the AVC cost curve at its minimum point.…
Q: a. Complete the table by filling in the values for profit, marginal revenue, and marginal cost. b.…
A: Total cost is the cost incurred by the firm for the production of final goods. The cost is divided…
Q: 9 Healthy Harry's Juice Bar has the following cost schedules: yC AY Q (vats) Variable Cost Total…
A: a. Table-1 shows the variable cost and total cost schedule.
Q: FC VC TC AFC AVC ATC MC 2. 2 A 3 3 1 2 2 1.8 1 .9 1.9 3 2. 2.4 4.4 .8 1.47 .6 4 2. 2.8 4.8 .5 1.2 .4…
A: Average total cost is the per unit total cost of production. Marginal cost is the additional cost…
Q: Average total cost equals O a. change in total costs / quantity а. produced O b. (fixed costs +…
A: Total cost is defined as the sum of all the expenses being incurred by the producer on order to…
Q: The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for…
A: Fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: 9. Cost-curve shifters The following graph shows the average total cost (ATC) curve, average…
A: Given the price of pizza including sales tax = $5 The price of pizza excluding sales tax = $4
Q: c. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the…
A: Answer to the question is as follows:
Q: In the above figure, curve A is the curve and curve Cis the _ curve. O A. total cost; total variable…
A: Total cost is the overall cost incurred in production, it is the sum of total fixed cost and total…
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: Use the figure to answer the following question(s). Figure 8-2 $10 ATC AVC 6. 4 10 20 30 40 Quantity…
A: Marginal cost: It is the additional cost of production when one more unit of quantity is produced.…
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: 3. Given information in the following table: Quantity Price (RM) Total Cost 60 18 58 20 3 54 24 4 48…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The formula for total fixed cost is TFC = TC + TVC. TFC = TVC - TC. TFC = TC/TVC. TFC = TC - TVC.
A: Total cost is the total expenditure incurred on the production of goods or services. It can be…
Q: Figure: Cost curves for a firm Price MC 17+ 16 15 14 ATC Duantiy Refer to Figure. At the price of…
A: Total cost is the sum of variable cost and Fixed cost, total cost shows how much cost incurred in…
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- How does fixed cost affect marginal cost? Why is this relationship important?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?What two lines on a cost curve diagram intersect at the zero-profit point?
- 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.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?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
- Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.Ball Bearings, Inc. faces costs of production as follows:Table 1: Ball Bearing Inc. Production CostsQuantity Total Fixed Cost Total Variable Cost0 100 01 100 502 100 703 100 904 100 1405 100 2006 100 360(a.) Calculate the company’s average fixed costs, average variable costs, average total costs, and marginal costsat each level of production.(b.) The price of a case of ball bearings is 50. Seeing that she can’t make a profit, the Chief Executive Officer(CEO) decides to shut down operations. What are the firm’s profits/ losses? Was this a wise decision?Explain.(c.) Vaguely remembering his introductory economics course, the Chief Financial Officer tells the CEO it isbetter to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.
- By using the notions of fixed and variable costs explain why theme parks close in winter months (Hint: Draw the relevant graphs)Requireda. How much is the fixed cost to produce the natural-organic oil? b. How many barrels of natural-organic oil should the firm produce to maximize its profit? c. How much is the price of the natural-organic oil per barrel? d. At what production level would the marginal cost exceed the average cost? e.bHow many barrels of natural-organic oil reflect the lowest minimum average variable cost?Megan’s Snow Shoveling Service, in which Megan is the only employee, has the following cost schedule. Quantity(sidewalks shoveled per day) Variable Cost Total Cost AVC ATC MC 0 $0 $30 - - - 1 10 40 10 40 10 2 25 55 12.5 27.5 15 3 45 75 15 25 20 4 70 100 17.5 25 25 5 100 130 20 26 30 6 135 165 22.5 27.5 35 a) What are Megan’s fixed costs? Given the nature of sidewalk shoveling production, why does Megan’s marginal cost curve look like it does in your graph? b)Suppose the market price for shoveling a sidewalk is $20 per sidewalk. How many sidewalks will Megan shovel each day to maximize profit? c)Suppose the market price of shoveling a sidewalk rises to $25 because it has been a snowy winter. How many sidewalks will Megan shovel each day to maximize profit?
