The relationship between sales (units sold) and profit is shown in the diagram below: A Quadratic $18.00 $16.00 $14.00 $12.00 $10.00 $0.00 $6.00 $4.00 $2.00 $0.00 S-2.00 Units Sold (thousands) Other than zero, at what level of output are profits equal to $0.00 thousand At what level of output are profits a maximum? [ |thousand. 21 Profit
Q: Complete the following table and answer the short discussion question. Average Cost (AC) Average…
A: In economics, TFC is the cost incurred when the output production is zero; therefore, here, TFC is…
Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…
A: The difference between the revenue earned from the sale of a product and the total cost of…
Q: Suppose you own a television factory and at your current level of output, you have average total…
A: Meaning of Average Total Cost (ATC): The term average total cost refers to the addition of the…
Q: Q1. Pizzas sell for $13 each. Pat’s cost of producing pizzas is given below. Complete the table:…
A: As the total cost(TC) is already given in the question, we can estimate both variable(TVC) and fixed…
Q: 44. When Pizza Express is producing 200 boxes of large vegetable pizzas, which of the following…
A: Given, Price = RO 2.00 per pizza Quantity of boxes produced = 200 A profit maximizing firm…
Q: A factory supervisor faces the following table: Quantity of laptops Labour cost ($) Rental of…
A: The term "average cost" refers to the production cost per unit, which is determined by dividing the…
Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…
A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…
Q: Use the information for average weekly figures to derive formulas to complete the information in the…
A: Answer: Note: formulas have been used to fill the table Calculation of fixed cost:…
Q: Suppose that a small family farm sold its output for $110,000 in a given year. The family spent…
A: Total Revenue= $110000 Money spent on fuel= $20000 Money spent on seed, fertilizers, and pesticides=…
Q: The World of Videos operates a retail store that rents movie videos. For each of the last 10 years,…
A: In the field of economics, the economic profit is calculated by subtracting the total cost of…
Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: Suppose that a firm produces 275,000 units a year and sells them all for $8 each. The explicit costs…
A: Given: Units produced=275000 Selling price=$8 Explicit cost=$18,00,000 Implicit Cost=$400,000
Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…
A: a. 50 units of output - Plant Size 1 b. 130 units of output - Plant Size 2 c. 160 units of output -…
Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…
A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000
Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…
A:
Q: The term productive efficiency means This is important because The term allocative efficiency means…
A: Productive efficiency ensures that the firm produces at efficient scale. Allocative efficiency…
Q: Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no…
A: An economic profit is the distinction among the sales a industrial entity has acquired from its…
Q: In a market that allows free entry and exit, when does the process of entry and exit end for the…
A: New firms enter the market when existing firms are making a positive economic profit in the short…
Q: Suppose a bakery’s fixed cost is the rent it pays for its location in a strip mall. Since firms have…
A: Fixed cost refers to those cost that are incurred without any production. In other words, fixed…
Q: Critically discuss the issues that fixed, variable and semi-variable costs can have on decisions…
A: A cost is the worth of money that has been spent to create something or supply a service and is…
Q: Answer the following: ○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal? ■ ○ b. If…
A: Total cost is the total expenditure dome by the producer in the production process. It includes both…
Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: Pizzas sell for $13 each. Pat’s cost of producing pizzas is given below. Complete the table: Output…
A: The costs and the revenues are essential for the firms to look up to because without it the firms…
Q: Consider the table below that describes the costs associated with producing a good (Q). Q Total…
A: Marginal cost of Q is equals to TC (Q) - TC(Q-1) So, MC(Q=2) = TC(Q=2) - TC(Q=1)
Q: Costs and Profit Maximization Under Competition: End of Chapter Problem a. Use the variable cost…
A: Fixed cost is the cost that remains the same regardless of how much output the firm produces.…
Q: A perfectly competitive firm has the following total cost function:…
A: Perfect competition refers to the market structure which features more number of sellers and buyers…
Q: Question 2 Please aim to write approximately 400 words for text and graph analysis. Assume TX Bakery…
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Total Revenue Total revenue is the totality of a sales amount from all of its products and services…
Q: The data in the following table give information about the price P (in dollars) for which a firm can…
A: As we know , that profit is the difference between total income and total cost . Whereas Marginal…
Q: Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.
A: Marginal Cost is the additional cost incurred in the production of additional unit of output.…
Q: Q#1. Last year, M.Hamed left a job that pays 36,000 OMR to run his own bike-repair shop. M. Hamed’s…
A: Given: M.Hamed left a job that pays = 36,000 OMR M. Hamed’s shop charges = 5 OMR for a repair Total…
Q: 11. Graph the cost curve below and explain. output (Q) P TFC TVC TC 0 8 50 0 50 10 8…
A:
Q: Consider the table below that describes the costs associated with producing a good (Q). Q Total…
A: Average total cost is the total cost divided by units of output.
Q: From the table below: -Calculate (1) total cost, - Draw total cost curv Total Cost Total…
A:
Q: th for vario
A: Average total cost is being referred to as the sum total of all of the production costs being…
Q: Complete the following table and answer the short discussion question Marginal Cost (MC) Total…
A: The total fixed cost (TFC) is the cost incurred when the output production is zero. Therefore, at…
Q: Suppose that the Travnikar Corporation manufactures widgets. Analysts that work for the company have…
A: A firm maximizes profit by producing at level of output where MR = MC. When MR > MC, firm should…
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Macroeconomics and microeconomics are important part of country mechanism. Aggregate demand and…
Q: (MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2…
A: Given, B = -Q 2 + 4,500Q C= 2Q 2 A. Profit is the difference between the benefits and the cost.…
Q: MNLOGS harvested logs (with no inputs from othher companies) from their property in northern…
A: Value added by a firm is the difference between revenues earned by the firm and cost it incurs.
Q: Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the…
A: Answer to the question is as follows:
Q: following table: Output per day Price ($) Total Costs ($) 0 80 40 1 75 45 2 70 48 3 65 56 4 60…
A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost if this is…
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Despondent over the Red Sox's terrible season, Prof. Gruber decides to quit his day job and start a…
A: We are going to calculate Marginal cost and Average cost curve to answer this question. Note: The…
Q: Please see the attached two pictures, one for the graph, and the other for the questions.
A: As shown in the graph, 1) Total cost per unit (ATC) is at the minimum where it intersects the…
Q: Fred currently works for a corporate law firm. He is considering opening his own legal practice,…
A: The profitability of a project is calculated by comparing its cost and it's expected earning. If the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the profit-maximizing output level?Question 2 Lamya has initial investment of SR45, 000. If it were to be invested on stocks, the market interest rate would be 0.12 (12%).However, the industry uses capital and labor as inputs and sells 2, 800 belts per month at SR25 market price. If the cost of the machine that produces the belts is SR 30,000 and labor cost is 20,000. Calculate the following: a. Total revenue. b. Opportunity cost of capital c. Economic profit d. Accounting profit e. From your answer in (c), is the business profitable from the economic profit point of view? Explain your answer. Question 3 The table below gives some data on the population of Crescent Highland. Use the provided information to fill the table. YEARS 1 2 3 4 5 6 7 Population: 16 Years Older or Over (Millions) LabourForce (Millions) Employed (Millions) Unemployed (Millions)…Q Price TR AR MR TC MC Profit 0 30 70 5 27 135 10 24 197 15 21 252 20 18 300 25 15 345 30 12 383 35 9 428 40 6 478 45 3 533 50 0 593 Requirements:1. Complete the table above 2. Graph the table completed and graph3. Provide a brief explanation of the firm's behavior to set production at 20 units at the price of P18 per unit.
- Q 4 5 6 Revenue and cost figures can be observed in the table below for Greensons Organic. Use the information in the first three columns to complete the table Output /Sales(Q) Total Revenue (TR) Total Costs (TC) Profit /Loss Marginal Revenue (MR) Marginal Costs (MC) Addition to profit 0 0 8 -8 1 7 14 -7 7 6 2 14 19 -5 7 5 3 21 23 -2 7 4 4 28 26 2 7 3 5 35 28 7 7 2 6 42 31 11 7 3 7 49 38 11 7 7 8 56 48 8 7 10 2. Is Greensons Organic operating in the short run or in the long run? Justify your answer 3. Calculate average variable costs when the level of output is equal to 5 units. 4. What level of output does Greensons Organic maximize profit? Justify/explain your answer and show calculations 5. When will the diminishing marginal returns start to prevail for Greensons Organic and why? 6.…2. A man is considering investing P500, 000 to open a semi-automatic auto-washingbusiness in a city of 400, 000 population. The equipment can wash, on the average, 12 carsper hour, using two men to operate it and to do small amount of hand work. The man plansto hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 daysper week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects tocharge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 permonth.He would pay his employees for 2 weeks for vacations each year. Because of the length ofhis lease, he must write off his investment within 5 years. His capital now is earning 15%,and he is employed at a steady job that pays P25, 000 per month. He desires a rate ofreturn of at least 20% on his investment. Would you recommend the investment?a) Use ROR method b) Use present worth method c) Use future worth method d) Solve for the payback period and the IRR1.During a year of operation, a firm collects $5,000,000 (TR) in revenue and spends $3,500,000 (EXPLICIT) on labor expense, raw materials, rent, and utilities. The firm’s owner has provided $1,000,000 of her own money instead of investing the money and earning a 12 percent annual rate of return. Show your work. a. The explicit costs of the firm are $_________. The implicit costs are $_________. Total economic cost is $__________. b. The firm earns accounting profit of $________. The firm’s economic profit is $_________.
- 9 The average cost of producing 10 units is Rs 30, while the average cost of producing 20 units is Rs 20. Find the average cost of producing 30 units. {Hint : Find Fixed cost. TC of 10 units = Rs 300, TC of 20 units = Rs 400, VC = Rs 10/ unit Fixed cost = TC = FC + VC (10* 10) = 300 = FC + 100 = FC = 200. Thus, AC of producing 30 units will be Rs 16.67}Q44. Suppose that cellphone batteries can be produce using 3 different types of technologies. The table below indicates the total cost related to each technology for the amount of output produced per day. a. Samsung is considering which technology to adopt to produce its cellphone batteries. Use the information to find the average-total-cost of each technology and identify the most efficient choice of technology and plant size if Samsung would like to produce 6 batteries. b. In general, where must the marginal cost curve intersect the average total cost curve?Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.
- Complete the following table: Units TFC TVC TC AFC AVC AC MC 0 24 0 1 24 28 2 24 54 3 24 75 4 24 96 5 24 126 6 24 168 7 24 214 8 24 264 1) Draw AFC, AVC, AC and MC on graph. 2) Explain relation between AC and MC.Graph the ATC and MC below and explain output ATC MC 0 - 10 10 18 2 20 10 1 30 7 0.5 40 5.375 1.5 50 4.6 2 60 4.166667 2.5 70 3.928571 3.3 80 3.85 3.2 90 3.777778 5 100 3.9 9 110 4.363636 10 120 4.8333331. Suppose there is a firm called Sebastian Industries that produces a product known as “Ortizs”. At q=0, the total cost is $200 and then increases by $20 for each additional unit produced. What is the FC? a) $0 b) $50 c)$100 d) $200 e) Not enough information 2. For q=10, what is the ATC? a) $0 b) $15 c) $30 d) $40 e) $55 3. Which of the following is NOT an example of a sunk cost? a) Purchase of a hamburger after starting to eat it b) Purchase of a movie ticket thirty minutes after the film has started c) Purchase of an item on Amazon...fifty days after delivery d) Purchase of a gallon of milk after you start drinking it e) Purchase of a new TV set with the receipt 4. Suppose we have another firm known as Sepanyan Corporation which makes a product known as Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC? a) $25.00 b) $67.50 c) $100.25 d) $200 e) Not enough information 5. Which of the following is true concerning a competitive firm? a) It…