The total cost of Mr. Plow, a snow-removal business, is given in the table below.Quantityadrivewayscleared)AbbreviationFormula:TotalRevenueTRTotal CostTC$0$252030405060708034414649515460709514510100What is the total profit of cleaning five driveways if the price Mr. Plow can charge is $10 per driveway? s01/21VIEW sOLUTIONO OF 21QUESTIONS COMPLETED28MacBook Pro59

Total Profits of 5 drive ways = Total revenues of 5 driveways - Total cost of 5 drivewaysTotal…

Answered: The total cost of Mr. Plow, a…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section7.5: Long-run Production Costs

Problem 1YTE

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How does fixed cost affect marginal cost? Why is this relationship important?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
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HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
What are diminishing marginal returns as they relate to costs?
What are explicit and implicit costs?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
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A young chef is considering opening his own sushi bat'. To do so,he would have to quit his cttt'rent job,which pays $20,000 ayea1; and takeovet' a store building that he owns and cut'rently rents to his brother fol' $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity.\'Vhat at'e his explicit costs? a.$26,000 b.$66,000 c.$78,000 d.$52,000
This is a repeated question since you guys only answerone question at a time! Let's assume that a firm's total weekly costs are as follows: 1. Salaries = $2,600. 2. Supplies = $400. 3. Rent = $800.In addition, the owners have invested their own money into the business. This could have earned them interest of $150 per week if they had chosen to put it into a bank instead of investing it into their business. If the firm has weekly revenue of $4,000, what are the firm's accounting profit and economic profit? Show your work please.

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