What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
Q: Universal’s variable cost to rent a car is $15. Assume the fleet size is fixed at 21,666. How many…
A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…
Q: Use the equations for the total cost C and total revenue R to find the number x of units a company…
A: A firm breaks even when it makes zero economic profit. It is a situation of no profit no loss.
Q: MC ATC Avc AVC B A AFC Quantity Refer to the diagram. At output level Q total variable cost is…
A: Mathematically, the average variable cost is determined by separating the absolute variable cost…
Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…
A: The Average fixed cost is constantly declining. The average variable cost curve is lower than the…
Q: Suppose a firm has chosen its quantity so that its marginal cost isequal to the market price, and is…
A: Known fact:Economies of scale: The economies of scale is a situation in which output can be doubled…
Q: 1. Economies of scale exist over the range of output to units. Does the firm experience diseconomies…
A: Economies of Scale This describes the cost savings that occur as a company expands its scale of…
Q: When average product increases, which short-run cost variable also changes? The output range over…
A: Marginal cost refers to the change in total cost with respect to change in output. Average total…
Q: Economies and diseconomies of scale explain: Group of answer choices the profit-maximizing level of…
A: Economies of scale are the point at which the expense per unit of creation (Average expense)…
Q: Consider the following hypothetical firm that is normally producing 200 units of the product per…
A: The term "cost of production" refers to all the costs that are involved when a company offers a…
Q: Suppose each firm of the industry has a short-run total cost curve of TC = 5+4q+q², where q is…
A: Total cost of production refers to the total monetary value incurred on fixed as well as variable…
Q: The graph shows the cost curves are they profit maximizing firm in a competitive market. If the…
A: In a competitive market, there are a large number of sellers and buyers who have full information…
Q: Short-run average total cost shows the minimum average total cost for each level of output…
A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: is the firm's total cost function? TC = 20,000 + (1,000q). TC = 1,000q. TC = 20,000. 20,000 +…
A: A firm has a fixed production cost of $20000 and a constant marginal cost of production of $1000 per…
Q: The marginal cost for a manufacturer of cherries is MC(q) = 0.06q³ + 0.5q + 50 per ecaton-cherry.…
A: Marginal Cost(MC) is the change in the total cost(TC) due to very small changes in the quantity(q)…
Q: Suppose a firm’s cost function is given by C(q) = 20 + 10q − 4q^2 + q^3 (a) What is fixed cost? (b)…
A: Given information: We have given the cost function. i.e., C=20 + 10q - 4q2 + q3 The cost function…
Q: Refer to the diagram above, in this instance, at the range of output represented a point c,…
A: TC and TR approach is one of the way to determine to profit maximized condition for the firm. In the…
Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…
A: Marginal cost is the cost of producing an additional unit. With the increase in production, till a…
Q: A company has the following cost functions in the short run, where the production level, Q , is…
A: During the period of short-run, there are two sorts of cost experienced by the business firm: fixed…
Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…
A: Given: Total Fixed Cost = 400. Average Total Cost = $3 Average Variable Cost = $2.50
Q: When a firm increased its output by one unit, its AFC decreased. This is an indication that the law…
A: Note: the options "B" and "C" have missing information. The total cost of the firm shows the market…
Q: Suppose a firm's marginal cost is increasing as it produces more output. Then the firms is said to…
A: The excess cost that is incurred by the producer to make an additional unit of output is known as…
Q: A firm’s short-run marginal cost______________________________. increases with output remain…
A: By definition, marginal cost refers to the additional amount of cost which the firm has to bear for…
Q: After one month of operation, OO Café determined to shorten its business hours and close on…
A: The cost of production is the summation of all the costs incurred while producing a commodity in the…
Q: The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book…
A: At the breakeven level of production, the firm will be exactly covering its total cost with the…
Q: Bob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His…
A: Total cost is the sum of Fixed cost and variable cost. Fixed cost remains same at all levels of…
Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…
A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…
Q: Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an…
A: Fixed Cost remains same at all levels of output. Marginal Cost is the additional cost incurred while…
Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…
A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…
Q: A producer borrows money and starts a business. He himself looks after the Identify implicit and…
A: Answering first question as per guidelines. Explicit Costs refer to actual payments made for…
Q: When a firm produces one unit, the variable cost is $3. When the firm produces two units, the…
A: The variable cost of the first unit = $3 The variable cost of the two units = $6
Q: Which of the following is correct if the firm described in Figure 7-4 decides to produce nothing?…
A: There are certain fixed costs that the firm has to incur even at 0 production level. Those costs are…
Q: f a firm has negative accounting profits in the short run, it should Question 10 options: All…
A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…
Q: When all fixed costs become variable costs a firm is considered to be in the
A: In the production process, a business firm develops its output from employing resources ( also…
Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…
A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…
Q: Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it…
A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse…
Q: Suppose a firm's long-run average cost is increasing as the firm produces more output. Then the firm…
A: Long-run average total cost is a business metric that represents the average cost per unit of output…
Q: e Excel to show formulas used Amazing is evaluating three locations for a second headquarters.…
A: Break even point = Fixed costs / (sales price per unit – variable cost per unit) · Location A Break…
Q: firm is producing and selling some output at an average variable cost of $8 per unit and bringing in…
A:
Q: Assume the short run variable cost function for Japanese beer is VC=0.6q^0.8 If the fixed cost (F)…
A: Variable cost: VC = 0.6q0.8 Fixed cost: F = 1500 -------
Q: A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has…
A: The following information is given: Output = 90 units, Average revenue = 46, Fixed cost = $270,…
Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…
A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…
Q: A firm’s total fixed cost is $360,000. Construct a table of its total and average fixed costs for…
A: Fixed Cost remains same at all levels of Output. Average Fixed Cost = Total Fixed Cost / Quantity
Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…
A: Marginal cost (MC) is the change in total cost or total variable cost per unit change in output.
Q: When a firm produces one unit, the variable cost is $8. When the firm produces two units, the…
A: Marginal cost is the addition to the total cost. Total cost consists of total fixed cost and…
Step by step
Solved in 2 steps with 1 images
- Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below (a) What is the dollar value of the firm’s total fixed cost? (b) At what level of quantity, the average total cost is minimized? Show your work. (c) Calculate the marginal cost of producing the first 10 units of output? (d) At what level of quantity, the marginal cost is lowest? (e) Explain the average-marginal rule in cost curves? (f) What is the market price? (Assume the firm is operating in a pure competitive market.) (g) If the firm enjoys market power than the firm’s market price will be higher or lower than the competitive market price? Why? What is natural monopoly? Explain why governments…Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below (a) What is the dollar value of the firm’s total fixed cost? (b) At what level of quantity, the average total cost is minimized? Show your work. (c) Calculate the marginal cost of producing the first 10 units of output? Show your work (d) At what level of quantity, the marginal cost is lowest? (e) Explain the average-marginal rule in cost curves? (f) What is the market price? (Assume the firm is operating in a pure competitive market.) (g) If the firm enjoys market power than the firm’s market price will be higher or lower than the competitive market price? Why?Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below At what level of quantity, the average total cost is minimized? Show your work.
- Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below At what level of quantity, the marginal cost is lowest?Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below Explain the average-marginal rule in cost curves?In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs Multiple Choice are $2.50. are $1,250. are $750. are $1,100.
- Draw the short run marginal cost curve for a firm with eventually diminishing marginal product. Then, draw an associated average variable and average total cost curve. Indicate the quantity associated with minimum average variable and average total cost. Then, indicate the price at which a firm is indifferent between shutdown and exit and the price at which a firm is indifferent between entry and exit.Given the following short run production cost schedule: Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 The table above gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below Calculate the marginal cost of producing the first 10 units of output? Show your work