Which of the costs discussed in the chapter is the most important when a firm is deciding how much to produce? Costs that are spent to improve the image of the firm. A firm will choose to increase output if it spends a large amount on advertising and brand image. Fixed costs because these costs are spent and cannot be changed in the time period under consideration. If fixed costs are higher, the firm will choose to produce more output. Variable costs because these costs change as output changes. If the firm wants to maximize profits, it will choose to produce a quantity where variable costs are minimized. Marginal cost because this cost shows the additional cost associated with producing one more unit of output. Firms will use this information to decide to produce more or less output.

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: An ice cream shop owner is deciding whether or not to keep her ice cream shop open during the…

A: Fixed costs are defined as the costs incurred at the time of setting up of the business such as…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…

A: Marginal cost: It is the cost of producing an extra unit.

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: A firm's total cost (TC) equals the sum of its fixed cost plus its Group of answer choices marginal…

A: Sunk cost is the cost which is incurred already and this cost can not be recovered.

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: You own a printing firm. Two of your senior managers provided you with advice. The first manager…

A: The profit of a firm is calculated by subtracting the total costs incurred on production from the…

Q: draw the marginal and average cost curves of companies p and q where Firm p: Cost= 4Q Firm q: Cost =…

A: Answer -    Average Cost = Average cost is cost per unit  Marginal cost = It is the cost a firm…

Q: Marginal cost is the:  rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not…

A: The marginal cost-  is the difference in overall production costs resulting from manufacturing or…

Q: In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output…

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

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: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He…

A: Total cost =total variable cost + total fixed cost

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: Fixed costs can be defined as costs that

A: A fixed cost(FC) is the cost that does not change with the decrease or increase in the number of…

Q: When a firm maximizes profit in the short run, it should consider:     all costs, including…

A: The short run is a period in which the time period is not long enough to make changes in all the…

Q: Which of the following statements is (are) correct? (x)  In the short run, if a firm produces…

A: Fixed cost is the cost incurred by the producer for the purchase of fixed inputs. These costs do not…

Q: If an increase in output size results in reductions in average costs, this is known as:…

A: An increase in the level of production increases the size of the output. This leads to a fall in the…

Q: Suppose that you and your roommate have started a Doughnut delivery service on campus. List some of…

A: Total Fixed Cost (TFC) : It refers to that part of the total cost that does not depend on output. In…

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: Consider the graph below for a firm. At point T, we know that the firm K TC = Total Cost; Q=f(K, L);…

A: Here, given graph shows total cost line and isocost curve of a specfiic firm.

Q: Increaseing marginal returns means that as the firm expands its output, its: OPTIONS long-run…

A: Increase in marginal returns: An increase in marginal returns refers to the variable input when an…

Q: this a good example of a sunk cost? Why or why not? “As an entrepreneur, advertising your product…

A: Yes, money spent on advertising and marketing is a sunk cost.  A sunk costs is a cost that you have…

Q: Lakes region in New York State produces wine. The climate favors white wines, but reds have been…

A: A fixed cost is the cost that does not change with output. It remains fixed throughout the period…

Q: please pick an example of three types of costs that a business can incur and briefly explain whether…

A: Fixed Costs are those costs that remain constant at all levels of output.  Variable Costs are those…

Q: Find TC, MC, AFC, AVC, and ATC from the following table. Instructions: Enter your responses rounded…

A:

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: Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last…

A: Scott's total cost increased by $466 because of hiring the last trainer who brought in one new…

Q: When the marginal cost is lesser than the average cost the firm is producing in which…

A: Costs are the expenses that firms incur in the production of goods and services.

Q: The following statement describes which source of low costs? “The more the firm has ever made, the…

A: Given :  The more the firm has ever made, the better it gets at making.

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 the following table illustrating the production function of gadgets. Furthermore, suppose…

A: Answer to the question is as follows :

Q: Urban Decay Cosmetics produces q units of setting sprays and their short-run total cost is given by…

A: Total cost measure the cost incurred in process of production.

Q: Suppose a firm’s total cost curve is TC = 50Q2 + 10Q + 800 and marginal cost is MC = 100Q + 10. Find…

A: The marginal cost curve cuts the average cost curve and average variable cost at their respective…

Q: In the short run, a firm will produce a positive amount of output as long as _____ Group of answer…

A: In short run, the firm will produce the goods as long as the price greater than the average variable…