Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, depreciation and obsolescence charges, sales taxes, and rental payments on leased office machinery. “There are no fixed costs in the long run; all costs are variable.” Explain.

Q: The following table shows a firm’s input, output, and costs in the short run. The price of each unit…

A: MPn=TPn-TPn-1MP1=TP1-TP0=4-0=4MP2=TP2-TP1=8-4=4

Q: Which firms have diseconomies of scale over the entire range of output?  a. Firm 1 b. Firm 2 c.…

A: In the long run, as the inputs are of variable nature, a firm’s expansion activities can either…

Q: Determine whether it is true or false The difference between economic profit and accounting profit…

A: According to given question In simple words economic profit is gradually referred to as in general…

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

Q: There is a different short-run ATC curve for each level of * variable cost. variable inputs. fixed…

A: The ordinary shape for a short-run normal expense curve is U-molded with diminishing normal expenses…

Q: Complete the table directly below by calculating marginal product and average product. Plot the…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: Explain the difference between fixed costs, sunk costs and variable costs. Provide an example that…

A: The total cost refers to the market value of inputs used by the firm in the production of goods and…

Q: What are some key fixed and variable costs for this business? Remember fixed costs do not change…

A: Variable costs will be costs that change as the quantity of the great or service that a business…

Q: rt 3C Suppose the long-run total cost function for the ESkooter Company is LTC = 22,600q – 300q2 +…

A: A firm  face economies of scale when its long run average total cost curve decrease as output…

Q: "Whenever a number which is less than the previous average of a total is added to that total, the…

A: In a market, it can be seen that the different cost curves are directly or indirectly related to…

Q: Why can the distinction between fixed costs and variable costs be made in the short run?

A: Understanding the difference between fixed costs and variable costs is important for settling on…

Q: Assume that in the short run a firm is producing 200 units of output, has average total costs of…

A: Total fixed cost is a part of Total cost which remains constant. The total cost can be calculated…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Solving with the help of formula

Q: The table below shows the short run cost for producing bicycles. Complete all missing values in…

A: Answer 1 To complete the above table we use the following formula Total Cost = Fixed cost + variable…

Q: Explain the difference between fixed and variable costs, and giveexamples of each.

A: Fixed and variable costs are the types of production cost that a producer incurs while producing a…

Q: Complete the following table of various types of cost for a firm in the short run. Assume that Total…

A: The expenses that are incurred for carrying out day-to-day transactions are known as costs. There…

Q: A common name for fixed cost is “overhead.” If you divide fixed cost by the quantity of output…

A: The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a…

Q: With appropriate examples, distinguish between (i) short run and long run (ii) fixed cost and…

A: The most important aspect in the business firms is the time period and the production amount as well…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: Total cost is the sum total of fixed cost and variable cost.

Q: Assume that in the short run a firm is producing 500 units of output, has average total costs of…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

Q: Complete the following table by calculating marginal product and average product.       Plot the…

A: INPUTS OF LABOR TOTAL PRODUCT MARGINAL PRODUCT AVERAGE PRODUCT 0 0 0 - 1 15…

Q: Ball Bearings, Inc., faces costs of production as follows:…

A: Cost of production refers to the overall cost incurred by a company to manufacture a given amount of…

Q: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $…

A: The extra cost incurred in the development of one more unit of a good or service is known as…

Q: What is average fixed cost? O the price of a fixed factor of production the total cost divided by…

A: please find the answer below.

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here given that, Short run a firm is producing 1000 units of output , Q = 1000 units  Average total…

Q: Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of…

A: Average cost is initially more and then decreases.

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: 1) Variable Cost is the cost when nothing is produced therefore when output is zero variable cost is…

Q: In the short run, if average variable costs equal $60, average total costs equal $70, and output…

A: Total Cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Imagine that you own your own business, or you are the manager of a company. Please provide concrete…

A: Fixed cost- It is not impacted by any change in the production or sale of goods.Variable cost- It…

Q: 22. What does the Long Run Average Cost curve depict? a) It depicts the relationship between Average…

A: Long-run average total cost (LRATC) is a business metric that addresses the average cost per unit of…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: Based on your knowledge of the definition of the various measures of short-run cost, complete the…

A: To complete the following table we use the following formula Total Cost = Fixed Cost + Variable…

Q: From the table below:​ -Calculate (1) total cost, ​ - Draw total cost curv   Total Cost​ Total…

A:

Q: The following table shows a firm’s input, output, and costs in the short run. The price of each unit…

A: Average fixed cost: AFC Average fixed cost is the cost that incurs with the production of additional…

Q: Output AFC AVC ATC MC 1 300 100 400 100 2 150 75 225 50 3 100 70 170 60 4 75…

A: Total fixed cost is the sum of all fixed cost required to produce goods and services in a specific…

Q: At the end of the year, a firm produced 20,000 laptop computers. Its total costs were $10 million,…

A: The variable cost: The variable cost can be calculated as follows: Thus, the value of variable cost…

Q: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory…

A: Fixed Cost refers to the cost that remains constant over a period of time irrespective of the amount…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: Solution: (a)Formula used (i) Total cost (TC) = Total fixed cost (TFC)+ Total variable cost (TVC)…

Q: Why do most fixed costs become variable costs in the long run?

A: Variable costs- Due to the sum of a product or service being generated, variable costs change. The…

Q: Marginal cost, average total cost and average variable cost Marginal cost and average total cost are…

A: a) No, Marginal cost, average total cost and average variable cost are not always equal. There exist…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here, total output given is 1,000 units. Average total cost is $100. Average total cost is defined…

Q: Using the data in the above table, the average fixed cost of producing 16 units is

A:

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A: We will complete a table with the help following formulas;- Total Cost = Fixed cost + Variable cost…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.