You are the CFO of a firm that sells and produces phones. Your firm is currently selling 1000 phones and it has an average total cost of $200. Someone calls desperate to buy one of your phones. The caller offers you $950 for it. You need to increase production by one unit if you accept the offer. If the firm increases production to 1001 phones the

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: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: At a recent board meeting, the president and CEO got into a heated argument about whether to shut…

A:

Q: If a firm is enjoying modest accounting profit but incurring significant economic losses, which of…

A: Here, it is given that a firm is enjoying a high accounting profit, but facing an economic loss.

Q: Suppose an artist produces 6 paintings. If fixed costs are $200 and variable costs are $100, then…

A: There are mainly two type of cost , FIXED COST and VARIABLE COST which is used in production ,…

Q: If short run total costs are 2q2 + 50q + 50, and output is 15, average variable costs will be 80.…

A: Given; Total cost; TC=2q2+50q+50 Formula to calculate average variable cost:-…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: Consider this statement “Total output starts falling when diminishing returns occur.” Do you agree…

A: According to the law of diminishing returns as more units of a variable input are used with a fixed…

Q: Find Average fixed cost with the following information:- Total fixed cost = $350 Output produced =…

A: The data presented in the question above is:- Total fixed cost = $350   Output produced = $70 The…

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: (Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning…

A: Given: Total revenue = 100 Cost (Explicit+Implicit) = 200

Q: How General Motors improve or operate their economies of scale?

A: This significant car maker has encountered interruptions to its tasks as interest in autos has…

Q: A hotel that produces 100 pizzas has a variable cost of OMR 50 and a fixed cost of OMR 200.…

A: The firm's costs and revenues are the important components that help the firm set its target and…

Q: Assume you are an engineer working for a chemical production company. You are on the technical team…

A: A production company, house, studio, or team is a corporation that provides the physical…

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: Find fixed cost if output is 20 units and AFC is $21

A: Given information, Total output= 20 units Average fixed cost (AFC)= $21 To find: fixed cost

Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.

A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…

Q: $/Q MC $30 ATC AVC 20 D 10 MR 50 100| 150 200 117 222

A: Given:ATC=$20Quantity=117

Q: 56. When a firm is experiencing diseconomies of scale, long-run average total cost is falling and it…

A: Answer - Need to find - When a firm is experiencing diseconomies of scale  Diseconomies of scale :-…

Q: Calculate Total revenue given that accounting profit is $340 and the explicit cost is $600

A: The data presented in the question above is:- Accounting profit = $340 Explicit cost = $600 Total…

Q: Hightide Upholstery Company manufactures a special fabric used to upholster the seats in power…

A: According to question     Given that,               Fixed cost(TFC) = $1000 Fixed cost is the type…

Q: Calculate Accounting profit if total revenue is $23,000 and explicit cost is $16,000

A: According to the above given question, the information given is:- Total revenue = $23,000 Explicit…

Q: The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table.…

A: Given: Fixed cost=$500 Output Total Variable Cost 1 $ 400 2 720 3 1,000 4 1,400 5…

Q: Vegemite has been recently introduced to the Chinese market. It sells for the equivalent of $2 per…

A: Given  Price of vegemite (P)=$2 per jar Variable cost of vegemite VC = $0.50 per jar Fixed cost (FC)…

Q: The transition from economies of scale to dis economies of scale is more likely to occur in a…

A: Economies of scale is defined as the cost advantage that is reaped by firms when the production of a…

Q: The total cost of producing mobile phones can be represented by TC = 60 +6q The MC of the 4th mobile…

A: Marginal cost: Marginal Cost at 4th unit = TC at 3rd unit - TC at 4th unit MC = TCn-TCn-1

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: Total cost of the firm to produce 50 Pens is 100 dollars with variable cost 25 dollars. Calculate…

A: The total cost of producing pens = $100 Variable costs of producing pens = $25

Q: Calculate the total revenue if explicit costs of the firm are $400 and the accounting profit is $850

A: Given information is :- Explicit costs = $400 Accounting profit = $850 We need to find the value of…

Q: List several Fixed and Variable costs, Explicit and Implicit costs associated with owning and…

A: Fixed costs are those costs that a firm has to incur even if it produces no output. Variable costs…

Q: Total variable cost as output increases, and total fixed cost as output increases Select one: A.…

A: The variable cost is the cost that changes when the output changes. This includes labor cost, cost…

Q: You are the owner of a small company that makes laptops at the price of $550. Your variable cost of…

A: The number of laptops can be found by equating price and the cost of producing laptops. We will find…

Q: Purpoll Oven operates a bakery in Quezon City. Due to its delicious products and strategic location,…

A: Work productivity is defined as real production per labor hour, and the change in this ratio over…

Q: Which of the following is considered when calculating economic profit but not accounting profit? a.…

A: Cost refers to the amount or equivalent paid or charged for something

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

A: Average total cost (ATC) is the per unit cost, which is calculated by dividing the total cost of…

Q: Find average fixed cost if TFC is 250 and Output is 15 units

A: Information being given to us is:- Total fixed cost = $250 Output = 15 units  We have to calculate…

Q: Thomas, a highly successful manager, quit his job in a large retail store so that he could start his…

A: The key motive that drives the firms in a market is profit. Profit is calculated by subtracting…

Q: Total Total Average Average Average Total Marginal Variable Fixed Cost $200 Output Fixed Variable…

A: The firm produces various goods and services and results in various costs on the production of goods…

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: Variable costs are         sunk costs.        costs that change every day.        costs that change…

A: Total Cost refers to all expenses involved in producing a good or providing a service.  It has two…

Q: ABC Ltd. makes a television table that sells for $60 per unit. It has variable costs of $20 per unit…

A: Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: Imagine a smartphone company has the following costs when they produce 200 phones: $50 in average…

A: When some product is manufactured, cost  takes place and process of business gets accelerated.…

Q: Peter runs a small local newspaper company. He can sell a newspaper at $2. He has fixed costs of…

A: Since you have posted multiple questions, will be answering only for first part.

Q: Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and…

A: Productivity of an input is defined as the average amount of a good that can be produced using each…

Q: The small family company that you manage has invested $35,000 in developing a new product, but the…

A: When individuals or firms makes economic decision, they generally make cost-benefit analysis to know…

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

A: Average total cost (ATC) is per unit cost which is calculated by dividing the total cost (TC) by the…

Q: If a firm is currently producing zero output, then total costs equal average variable costs. B…

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