The vertical distance between ATC and AVC measures: a. marginal cost. b. total fixed cost. c. average fixed cost. d. economic profit per unit.
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A: Answer to the question is as follows:
The vertical distance between ATC and
a. marginal cost.
b. total fixed cost.
c. average fixed cost.
d. economic profit per unit.
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- Price equals $20, quality equals 400 units, unit cost equals $15, implicit cost equals $4000. What does economic profit equal?Average Fixed Costs (AFC) is equal to A. Average Total Cost (ATC) - Average Variable Cost (AVC). B. [Total Costs (TC) - Total Variable Costs (TVC)] / Quantity (Q). C. Total Fixed Costs (TFC) / Quantity (Q). D. all of the above. E. none of the above.Q: A farmer plane to harvest maize on his specific land. Discuss all factors of production whichhe need to harvest the whole season of crop. Also mentioned their rewards. Differentiate between economic profit and accounting profit, implicit explicit cost, total cost, variable cost, & average cost?
- (a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…no copy from chegg or other sources only original answers please Give reasons, when average cost increases as the total output increases for an increasing cost industry?Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.
- a. Give 2 examples of explicit cost b. Give 2 examples of implicit cost/opportunity cost/cost of ownership/cost of equity capital c. Imagine yourself as an entrepreneur. Pick any business you like. Run some numbers to calculate your accounting profit and economic profit. Show your numbers. Note: Make up those numbers yourself. d. After you have run the numbers, do you still want to start the business? Why or why not?True/False Marginal cost is the addition to the total cost when more unit of output is being produced.40) When a decrease in the scale of production leads to higher average costs, the industry exhibitsA) diminishing returns. B) decreasing returns to scale.C) constant returns to scale. D) increasing returns to scale.
- If an increase in output size results in reductions in average costs, this is known as: Answers: A. Economies of scale. B. Half-way rule of marginal revenue. C. Diminishing marginal returns. D. Rising average total cost.Indicate on the graph the areas that represent Total Revenue, Total Cost, and Profit.a. When P>ATCb. When P<ATCc. When P=ATCFinancial Data Daily demand: 1,000 cases Fixed cost: $5,000 per week Variable cost • Weekdays: $7 per case • Sundays: $12 per case Generic aspirin production • Unit price: $10 per case Brand-name aspirin production • Weekly demand: 1,000 cases per week Unit price: $30 per case Find: (1) How to schedule the product mix, and (2) is it worth operating on Sundays?