Q: What are the average total cost, average variable cost, average fixed cost, and marginal cost of…
A: Q=4 TC=140 TFC=50 ∆TC=140-110 =30 ∆Q =4-3 =1
Q: why is the fixed cost 10?
A: Fixed cost doesn't change with the change in the number of output.
Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…
A: The costs and the revenue analysis of the firm is quite important because from it the firm gets to…
Q: After one month of operation, UCC Cafe decided to shorten its business hours and close on weekends.…
A: When UCC cafe reduced business hours and weekends holiday. It considered variable cost.
Q: When a firm produces 600 widgets with total cost of $1,300 and fixed cost of $800, what is the…
A: The variable cost per unit is the average variable cost.To calculate the average variable cost,…
Q: Referring to the cost table above, what is the average total cost if quantity produced equals 300…
A: Total cost of a firm is the cost incurred by the firm by producing a certain amount of output. The…
Q: What shapes would you generally expect each of the following cost curves to have: fixed costs,…
A: Cost curves shows how the cost of production changes when output/quantity changes.
Q: An owner of a firm estimates that the average total cost is $6.71 and the marginal cost is $6.71 at…
A: The information given here indicates that the average total cost, as well as the marginal cost of…
Q: 39) If the marginal cost curve is below the average variable cost curve, then A) average variable…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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: 7. What is the average total cost function and the MC function? 100 a. ATC= +60³; MC = 80 b. ATC=…
A: Given; Production function; F(L,K)=L1/4K1/2 Wages; w= 2 Rent; r= 4
Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…
A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…
Q: Cost A company buys and retails baseball caps, andthe total cost function is linear. The total cost…
A: Marginal cost shows the increment in the total cost by producing an additional unit of the cap.
Q: A company is planning to manufacture mountain bikes. The fixed monthly cost will be S100,000 and it…
A: Given that fixed monthly cost for manufacturing mountain bikes is $100,000. Cost of each bicycle is…
Q: If average cost is $30 and the total cost is $900 What output must the firm have produced
A: Total Cost(TC) is the total amount incurred by the firm in production of given quantity. Average…
Q: Find 10 problems related to variable cost and solve it.
A: Variable cost is such a cost which vary directly with the level of output. They can be of two types…
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: Melvin manufactures a single product. Total cost per unit is $70 when production is 100 units per…
A: Total cost per unit if production is 100 units per week = $70 Total cost of 100 units per week =…
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: Which of the following is an example of a Variable Cost? A. an employee who makes $40,000 a year B.…
A: Fixed cost is the cost that remain same at all levels of output. Variable cost is the cost the…
Q: The output and total cost schedule of WholeMade BD is provided in the table. What is average fixed…
A: The average fixed cost can be calculated by using the following formula: Average fixed cost=Total…
Q: Answer the question on the basis of the following cost data. Average Fixed Average Variable Output…
A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…
Q: Average cost decrease indefinitely as output expands. Is that true?
A: Economies of scale signifies a scenario where a firm reaps the cost benefits while carrying out…
Q: The Firms average total cost is $60 its average variable cost is $30 and its total fixed cost is…
A: Output: It refers to the quantity that a company is producing goods and services within a limited…
Q: In a recently opened shopping mall, Jagdeep sells handmade coffee mugs in abooth for $25 each and…
A: The break-even point is a level of quantity at which the total revenue generated from the sale of…
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: If the average variable cost is $2.00 and the average total cost is $8.00 and the marginal cost is…
A: Answer: Note: I am considering that average variable cost, not average available cost as you have…
Q: Calculate TFC if average fixed cost is $30 and output is 50
A: The information being given is:- Average fixed cost = $30 Output = 50 units Total Fixed 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: In the table, the average variable cost at 2 units of output is
A: Answer to the question is as follows :
Q: Which costs are measured on per-unit basis: fixed costs,averagecost,average variable cost,variable…
A: Cost(C) is an important component of production. The ‘cost of production’ refers to the total…
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: If marginal cost is less than the average variable cost and output increases, average total cost…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: QUESTION 3 Big Boss Company produces 16 units of output at a total cost of $2,142. If the fixed…
A: Answer : Here first find total variable cost Total variable cost = Total cost - Total 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: What is theoretical relationship between Marginal Cost and Average cost
A: Costs refer to the amount of money that the firms need to give up in order to perform certain…
Q: The additional cost of producing one more unit of output is calicu
A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.
Q: Given the total cost function TC = 100 + 40Q - 15Q2 + 5Q3, what is Average Total Cost (ATC)? A. ATC…
A: Average cost or unit cost is equal to total cost divided by the number of units of a good produced…
Q: Al Mardoof Company paid different types of costs for different output levels as shown in the given…
A: From the graph, we can see that the variable cost is depicted by the Green line. The cost is on the…
Q: ne that it costs a company approximately C(x) = 400,000 + 160x + 0.002x2 s to manufacture x…
A: When MC<AC, then AC is decreasing When MC=AC, then AC is constant or say at minimum When…
Q: If average total cost is $100, average variable cost is $30 and output is 50 units. What is the…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Explain graphically cost behaviour in a fixed size plant?
A: Fixed cost refers to the cost that the firm needs to bear always that does not change with the…
Q: Which of these will have lower values as the quantity produced increases? a. Fixed cost per unit b.…
A: Fixed Cost remains fixed at all levels of output. Average Fixed Cost or fixed cost per unit…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is die difference between accounting and economic profit?Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?Problem 6Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its topselling product, almond croissants. The annual demandfor almond croissants is 12,000 units. The setup costs fora production run of the croissants is US$15. The holdingcost per unit per year is US$0.50. Production is mostefficient when 80 croissants are produced per day. Thecompany operates 300 days during a year.a What is the economic production quantity (EPQ)?b How many production runs will there by per year?c What is the maximum inventory level?d What is the total annual cost (in US dollars)?e What is the length of a production run in days?
- Metters Cabinets, Inc., needs to choose a productionmethod for its new office shelf, the Maxistand. To help accomplishthis, the firm has gathered the following production cost data: PROCESS TYPE ANNUALIZEDFIXED COST OFPLANT & EQUIP. VARIABLE COSTS (PER UNIT) ($)LABOR MATERIAL ENERGY MassCustomization $1,260,000 30 18 12Intermittent $1,000,000 24 26 20Repetitive $1,625,000 28 15 12Continuous $1,960,000 25 15 10Metters Cabinets projects an annual demand of 24,000 units forthe Maxistand. The Maxistand will sell for $120 per unit. a) Which process type will maximize the annual profit from pro-ducing the Maxistand? b) What is the value of this annual profit?1. Direct laborrate: $15.00perhour Production material: $375 per 100 items Factory overhead: 125% of direct labor Packing costs: 75%ofdirectlabor Desiredprofit: 20%oftotalmanufacturing cost use the above information to answer how many units must be sold to achieve a profit of $25,000? [Note that the units sold must account for total production costs (direct and overhead) plus desired profit. 2. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Show work and Select the closest answer. a) $4,618,000 b) $10,623,000 c) $14,342,000 d) $ 14,891,000Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
- Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the firm produces 265 units of output and sells it at $1 per unit, is it making profits or losses? How much are they making?Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.Problem 1. During your first month as an employee at Greenfield Industries (a large drill-bitmanufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on aturning machine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previous employeewho could not finish the analysis, but she has given you the following information: An old turningmachine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit.The in-house technicians have given an estimate of $40,000 to modify this machine, and they assureyou that they will have the machine ready before the projected start date (although they havenever done any modifications of this type). It is hoped that the old turning machine will be able tomeet production requirements at full capacity. An outside company, McDonald Inc., made themachine seven years ago and can easily do the…
- 1. Suppose Firm A has a budget of P1.5 million pesos in outsourcinginputs, labor and machines, that would lend support in its 1 yearoperation. Suppose further that the cost of labor for 1 year is P150,000and for a machine is P200,000. If it decides to hire 6 laborers, howmany machines would it accept?16 The expenses budgeted for production of 1,000 units in a factory are furnished below: Particulars Per Unit OMR. Material Cost 700 Labour Cost 250 Variable overheads 200 Selling expenses (20% fixed) 130 Administrative expenses (OMR. 200,000) 200 Total Cost 1,480 Prepare a budget for production of 800 units assuming administrative expenses are rigid for all level of production. a. OMR 1,239,300 b. OMR 1,229,200 c. OMR 1,350,000 d. OMR 1,250,000A publishing company sells 400,000 copies of certain books each year. It costs the company $1 to store each book for a year. Each time it must print additional copies, it costs the company$500 to set up the presses. How many books should the company produce during each printing in order to minimize its total storage and setup costs? (a) The company should producen______books each printing in order to minimize costs.
