- Which one of these will continuously increase as more products are produced? a. Average fixed cost b. Fixed cost c. Variable cost d. None of the
Q: 4. What is the total cost of producing 100 units of output? 5. How much profit was made?
A: Before calculating the total cost, the least cost combination of the inputs should be calculated.…
Q: мса 13 Assuming no change in input prices, if the marginal productivity of labour falls as…
A: Here, it is given that the marginal productivity of labor falls as the production of output rises…
Q: 3. For the technologies y=min =+x; compute: and a) the total cost and the cost of production of 1…
A: The total cost function is a relationship between total cost and output level and input prices. It…
Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…
A: Adam Smith is considered the father of economics. He was the first individual to notice that as long…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Answer: LRATC (long-run average total cost)=Long-run average total cost is obtained by taking the…
Q: a. Why will firms in most markets be located at or close to the bottom of the longrun average cost…
A: A. Why will firms in most markets be located at or close to the bottom of the long-run average cost…
Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: Economies of scale refers to the gradual decline in the average cost with increase in the scale of…
Q: 5. The following information relates to the cost of output of a product. Total Cost (S) 10 000 10…
A: 5. The marginal cost is the additional cost incurred while producing an additional unit of output by…
Q: (6) If marginal product is greater than average product (a) total product must be increasing.…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: 6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a single…
A: A profit-volume (PV) chart is a graphic representation which shows the earnings or losses of a…
Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.
A: Economies of scale: Economies of scale are the cost advantage happens due to increase in…
Q: 28 - : Total variable cost of firm X is 100 and total fixed cost is 20 TL. The firm produces 40…
A: The process of production uses various inputs and converts them into finished goods using production…
Q: a. What would be the new values in the table? Instructions: Enter your answers as a whole number.…
A: Marginal Product = TPn - TPn-1 Total Revenue = Price × Quantity
Q: 9 - The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q.…
A: The total cost of producing computer software diskettes is given as : TC = 200 + 5 Q
Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…
A: The economies of scale is situation when producing more quantity of goods , the unit cost of…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Short run average total cost is $720 per bike. In the long run, it would like to produce using three…
Q: 4. The average variable costs of a company are equal to $20 per unit produced at its current level…
A: Variable cost per unit produced=$20Fixed cost per unit produced=$30Total cost at this level=$2500
Q: 1. The cost-revenue data for a manufacturing company Item Cost or Revenue Selling price $85/unit…
A: The average cost is the per-unit cost which is calculated by taking the ratio of the total cost to…
Q: What is the formula to calculate profits?
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: The average total cost (ATC) measures the total cost incurred by a firm for every output unit it…
Q: QUESTION 1 Table 13-16 Average Variable Marginal Average Variable Average Total Fixed Quantity Total…
A: In economics, average variable cost (AVC) is described as a firm's variable costs divided by the…
Q: Fill in the remaining cells of the table. Average Variable Cost Total Total Fixed Total Variable…
A: Marginal cost is the cost incurred by the firm when one additional unit of output is generated. It…
Q: 6. Suppose that Ahmad owns a pizza shop in Ajman. He sells 60 pizzas per day for 20 UAD each. His…
A: Here, given information is: Output (Q): 60 pizzas per day Price (P) 20 UAD Total cost (TC): 1000…
Q: 4. Problems and Applications Q4 Ball Bearings, Inc., faces costs of production as follows:…
A: The following table can be completed and written as follows by using the following formulas:TC = TFC…
Q: 2. Fill in the table Costs of Production of a Soap Manufacturer Bar of Total Total Average Average…
A: Introduction We have given data related to the cost of the soap manufacturer. We have given total…
Q: 1. How much is fixed cost (TFC)? For the following questions, first check: a) is P greater than or…
A: Hi student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.
A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…
Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…
A: The economies of scale takes place when there is reduction in the cost of production with the…
Q: 1. Factors that increase productivity and explain each
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3. What is the rate of return that includes the minimum profit as an expense?
A: Accounting rate of return include the minimum profit as an expense
Q: 1. If the marginal product of an input is falling, then what must be true? Average fixed costs must…
A: Marginal product means the extra output generared by adding a unit of input.
Q: Course: Microeconomics - Theory of Production A field produces wheat. Land is a fixed factor, so the…
A: 1. Before we fill in the blanks in the table, we should know the definitions and relations between…
Q: 3. For the technologies y=min- ,4x, } and y=- +x, compute: 4 a) the total cost and the cost of…
A: TC = total cost MC= marginal cost AC= average cost. The prices of inputs are (4,6)
Q: statements is true or false and explain If marginal cost is larger than average cost, average cost…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: QUESTION 1 Table 13-16 Average Average Variable Marginal Fixed Variable Quantity Total Cost Fixed…
A: In economics, average variable cost is a firm's variable costs divided by the quantity of output…
Q: Instructions: 1. Complete the table making the appropriate calculations. 2. Graph Fixed cost,…
A: fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: How does fixed cost affect marginal cost? Why is this relationship important?
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Explain the difference between explicit costs and implicit costs.
A: There are various type of cost exist in the production process.
Q: 7. Explain the difference between fixed costs, sunk costs and variable costs. Provide an example…
A: FIXED COSTS : The costs are borne by the producer in the short run and it does not change with the…
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- 22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost10 . If marginal product is less than average product, then average product is : A. decreasing b - fixed C- None of the above d - growingA computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?
- 3. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are $12,500 per research project.a. If the revenue per project is $30,000, what is the breakeven number of projects of this lab in a year to sustain its operations?b. Currently, the lab works on 20 projects a year. What is their profit at this level?c. If variable costs increase to $13,000 per research project, what is the new BEP? By how much will their profit increase or decrease?37- If firm X produces 20 units of product with a total cost of 100, what is its average cost? a) 2nd B) one NS) 120 D) 5 TO) 80(A) what were the fixed costs of production for the firm? (B) at what rate of output was profit computer maximized?(choose the highest output level.) (C) at what output rate was total profit maximized? Computers per month
- True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.35. If a firm triples inputs and produces twice the output, then there are constant returns to scale. no returns to scale. decreasing returns to scale. increasing returns to scale. Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote23) Refer to Figure 8.4. Micro Oven's average fixed costs of producing two units of output areA) $150. B) $300.C) $450. D) indeterminate from this information.
- a. Why will firms in most markets be located at or close to the bottom of the longrun average cost curve? b. Distinguish between implicit and explicit costs. How is it possible to havepositive accounting profit and negative economic profit concurrently? c. Distinguish between economies of scale and constant returns to scale. What shape will the long-run average cost curve have for economies of scale andconstant returns to scale. d. What is the difference between production in the short run and production in the long run? Explain the shape of the long-run cost curve in relation to shortrun cost curves?# 13 Aabir, a milk farmer, earns $300k per month in revenue. His monthly costs include Administrative costs $40k, Feed $60k, Equipment & maintance $40k, Labor $70k, Transportation $10k, Miscellaneous $20k. Foregone rent for the land used for the cattle grazing $10k. Value of his son's time that helps on weekends $2k, Owner's salary $ 10k, Aabir's accounting & economic profit respectively are: a.) 60k & 48k b.) 50k & 38k c.) 60k & 38k d.) 38k & 38k8- A business is below the economic break-even point and above the operational break-even point. Therefore, it can be said that: *a) gives operating and economic profitb) gives economic profit and operating lossc) gives operating profit and economic lossd) causes economic and operational loss