Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 8QE
To determine
Determine the type of costs.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The cost table below has enough information for you to completely fill out the blanks in the five rows (output 0, 1, 2, 3, 4). Here is a hint: at Q=4 you are told that AFC is $18. Since AFC=FC/Q, you know that FC must be $72. And, of course, FC is the same for all output levels, including zero. Now you have the first column completed!
Note: Please round your answers to a whole (integer) number; enter whole (integer) answers only; and do not include a $ (dollar) sign. For example, for $72.00 you will enter 72.
Price = $20, quantity = 400 units, unit cost = $15, implicit costs = $4,000. What does economic profit equal?
Answer the following:
If TVC = $80 and AVC = 4, then what does quantity (Q) equal?
(b) If the total cost is $40 when Q = 2 and the total cost is $45 when Q = 3, then what does marginal cost equal?
(c) What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2?
(d) Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as the quantity of output increases?
Explain what responsibilities of "cost control" are in a project associated with the making of a Hollywood-style movie. How would these responsibilities change if the movies was a documentary, say on the Covid-19 pandemic?
Chapter 11 Solutions
Microeconomics
Ch. 11.1 - Prob. 1QCh. 11.1 - Prob. 2QCh. 11.1 - Prob. 3QCh. 11.1 - Prob. 4QCh. 11.1 - Prob. 5QCh. 11.1 - Prob. 6QCh. 11.1 - Prob. 7QCh. 11.1 - Prob. 8QCh. 11.1 - Prob. 9QCh. 11.1 - Prob. 10Q
Ch. 11 - Prob. 1QECh. 11 - Prob. 2QECh. 11 - Prob. 3QECh. 11 - Prob. 4QECh. 11 - Prob. 5QECh. 11 - Prob. 6QECh. 11 - Prob. 7QECh. 11 - Prob. 8QECh. 11 - Prob. 9QECh. 11 - Prob. 10QECh. 11 - Prob. 11QECh. 11 - Prob. 12QECh. 11 - Prob. 13QECh. 11 - Prob. 14QECh. 11 - Prob. 15QECh. 11 - Prob. 16QECh. 11 - Prob. 17QECh. 11 - Prob. 18QECh. 11 - Prob. 19QECh. 11 - Prob. 1QAPCh. 11 - Prob. 2QAPCh. 11 - Prob. 3QAPCh. 11 - Prob. 4QAPCh. 11 - Prob. 5QAPCh. 11 - Prob. 1IPCh. 11 - Prob. 2IPCh. 11 - Prob. 3IPCh. 11 - Prob. 4IPCh. 11 - Prob. 5IP
Knowledge Booster
Similar questions
- What are the short-run and long-run costs of the production of Adidas?arrow_forwardWhat are the fixed and variable costs of (a) a pizza shop, (b) an Internet service provider, (c) a corn farm, (d ) a movie theater? Which needs the highest sales volume to earn a profit?arrow_forwardFind the value of A,B,C,D & E. Add $8 with FC. New FC=$10, now assuming quantity and variable cost remain the same, Create a new table and find the value of TC,AFC,AVC,ATC and; MC.arrow_forward
- Answer the following: ○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal? ■ ○ b. If total cost is $40 when Q 5 2 and total cost is $45 when Q 5 3, then what does marginal cost equal? ■ ○ c. What does average fixed cost equal at Q 5 2 if totalvariable cost is $15 at Q 5 2? ■ ○ d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?arrow_forwardFind TC, MC, AFC, AVC, and ATC from the following table.Instructions: Enter your responses rounded to two decimal places. Units (Q) FC($) VC($) TC($) MC($) AFC($) AVC($) ATC($) 0 100 0 — — — — 1 100 40 2 100 60 3 100 70 4 100 85 5 100 130 (Note: Marginal costs should be interpreted as between levels of output.)arrow_forwardThree college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pays $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additional costs are $1,000 a year for insurance and $.50 per person per hour for materials and supplies. Their services would be priced at $10 per hour per person. a. What are fixed costs? b. What are variable costs? c. What is the marginal cost? d. How many student hours would it take to break even ?arrow_forward
- Most manufacturing companies divide manufacturing costs into which three broad categories?arrow_forwardExplain average fixed cost (AFC)?arrow_forwardRafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business for which he spent $7,000 on Google and Facebook advertisements and paid himself $75,000. Based on this information, what were his economic cost of this new business?arrow_forward
- Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the studentrecreation center, which pays $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additonal costs are $1,000 a year for insuranceand $0.50 per person per hour for materials and supplies. Their services would be priced at $10 per hour per person.A) What are fixed cost?B) What are variable costs?C) What is the marginal cost?D) How many students would it take to break even?arrow_forwardThe difference between economic profit and accounting profit is? Average cost Direct costs Economic costs Variable costs Marginal costsarrow_forwardQuestion 1 Output (Q) Total Fixed Cost (TFC) Total Variable cost (TVC) 0 100 0 1 100 50 2 100 125 3 100 205 4 100 295 5 100 395 Which of the following is true of marginal costs, based on the data in the table above? 1. Marginal costs are rising throughout the output range shown. 2. Marginal costs are falling throughout the output range shown. 3. Marginal costs are constantarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
