EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 4P
Sub Part (a):
To determine
Average total
Sub part b:
To determine
Average total cost and its relevance.
Sub part (c):
To determine
Identifying decreasing cost industry.
Sub part (d):
To determine
Identifying decreasing cost industry.
Sub part (e):
To determine
Identifying decreasing cost industry.
Sub part f:
To determine
Average total cost and its relevance.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following figure shows the revenue and cost curves for a firm X.
RM
10
a.
b.
C.
7
6
LO
5
4
3.5
0
20 25 30
MC
40
AVC
AC
AR=MR
Units
If a firm X achieves productivity efficiency, what will be the total revenuel
generated
At what price will a firm stop operating? Please explain.
If the market price is RM4.00, what is the total profit or total loss.
q
0
1
2
3
4
5
6
TFC
$5
5
5
5
5
5
5
TVC
$0
3
LO
5
9
16
25
36
MC
-
$3
2
4
7
9
11
P = MR
$5
5
5
5
LO
5
5
5
A profit-maximizing firm should produce a quantity of
TR
$0
5
10
15
20
25
30
TC
$5
8
10
14
21
30
41
Profit
$-5
- 3
0
1
- 5
11
units. (Enter your response as a whole number.)
4. Various measures of cost
Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table
presents the brand's total cost of production at several different quantities.
Fill in the remaining cells of the following table.
Quantity Total Cost Marginal Cost
(Pairs) (Dollars) (Dollars)
0
1
2
3
4
LO
5
6
120
200
240
285
340
425
540
Fixed Cost Variable Cost
(Dollars) (Dollars)
Average Variable Cost
(Dollars per pair)
Average Total Cost
(Dollars per pair)
Chapter 12 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Knowledge Booster
Similar questions
- The graph below shows the market for oats. Price per bushel 10 9 8 7 6 LO 5 4 3 2 1 0 15 45 30 75 105 135 120 150 60 90 Quantity per period (in millions of bushels) D Tools S₂ (i)arrow_forwardLO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost and average cost. Suppose that Patrick's Handmade Puppets has a production cost that is given by C(x) = 2,000 + 130x – 0.6x2 + 0.002x3 dollars (0arrow_forwardUse the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Goods 100 90 I Quantity Demanded 25 80 (Units) Demand Price (Dollars per unit) 70 50.00 60 50 40 30 Demand 20 10 10 15 20 25 30 35 40 45 50 QUANTITY (Units) PRICE (Dollars per unit)arrow_forwardIndustry Z is made up of the following firms. One firm makes up 40% of the total market sales, one of the firms make up 25%, one of the firms make up 20%, one firm makes up 10%, and the remaining firms make up 5% of the total market sales. What is the HHI for this industry? O 2,730 O 95 O 1.800 O 1,200arrow_forwardYou are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year. Your economic profit last year was O $50,000 O $60,000 O $10,000 O $30,000arrow_forwardSuppose that the pen-making industry is perfectly competitive. Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves, with minimum ATC = $1.25 per pen. If the market equilibrium price of pens is currently $1.50, what would you expect it to be in the long run? LO11.2 a. $0.25. b. $1.00. c. $1.25. d. $1.50.arrow_forward.ll touch LTE 10:05 PM O 9 37% O A docs.google.com In a perfectly competitive market, what happens to a firm's profit-maximizing level of output if the price of the product falls? * Because the firm maximizes profit by setting marginal revenue equal to O marginal cost, an increase in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will not affect the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will increase the firm's profit-maximizing level of output.arrow_forwardSuppose U.S. drivers purchased $50 billion of ExxonMobil-produced gasoline during a recent year, with one-half purchased directly from ExxonMobil-owned gas stations and one-half from independent (or third-party) gas stations. Suppose further that ExxonMobil purchased the oil (which it refined into gasoline) from foreign producers for $20billion and that it receives 60 percent of the sales revenue that independent stations generate from selling ExxonMobil gasoline. In this case, the value added by ExxonMobil to U.S. GDP is $__billion.arrow_forward7. Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of output? Draw the firm's long-run average-cost curve on the diagram and describe this curve. LO9.4 ATC 0 M 150 ATC2 ATC₁ ATC3 80 240arrow_forwardMC ATC AVC MARKET PRICE AFC 15 P.arrow_forwardQuestion 1 The Profit Maximizing Production Level for this firm at the given market price will be: O 45 O 15 O 60arrow_forwardConsider table 3.1. What is the dollar amount of average variable cost per unit at the production level of 600 units? TC=3205 Production (units) 0 100 Select one: O a. 4.04 O b. 4.34 Oc 4.74 O d. 5.04 200 300 400 500 600 700 Rent $300 $300 $300 $300 Wages $200 $410 $650 $900 $1,200 $300 $300 $1,520 $300 $1,905 $300 $2,300 Supplies Tools $0 $100 50 $100 $150 $200 $250 $300 $350 $200 $300 $400 $500 $600 $700 $800 Total Cost $600 $960 $1,350 $1,750 $2,200 $2,670 $3,205 $3,750 3205 700 300 2,205 TVC 1 - 2205/600= 3.675 Aarrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education