The total variable costs are
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- The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.arrow_forwardA pastries company has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. First. Create a table that shows the company's output, total cost, marginal cost, average cost,variable cost, and average variable cost. Second. At what price is the zero-profit point? At what price is the shutdown point? Third. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss. Fourth. If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.arrow_forward1. To build the curves of total revenue (TR) and total costs (TC) of the company. 2. To calculate, to fill in the table and to build the curves of marginal revenue (MR) and marginal cost (MC) of the company. 3. To determine graphically the output of the company providing the maximum profit.arrow_forward
- Now compute the missing marginal revenue from the table. The table is reproduced here for convenience. Note: answers should be integers only (i.e 1,2,3,4,5,6,.... etc). Based on the information you computed, what quantity should the firm produce to maximize profits? Quantity Total Cost ($) Total Revenue ($) Marginal Cost ($) Marginal Revenue ($) 0 8 0 -- ? 1 9 8 ? 2 10 16 ? 3 11 24 ? 4 13 32 ? 5 19 40 ? 6 27 48 ? 7 37 56 ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardThe Banana computer company produces affordable, easy-to-use home computer systems andhas fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company's output, total cost, marginal cost,average cost, variable cost, and average variable cost. A At what price is the zero-profit point? Atwhat price is the shutdown point? B If the company sells the computers for $500, is it making a profitor a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate youranswer and show the profit or loss. C If the firm sells the computers for $300, is it making a profit or aloss? How big is the profit or loss? D Sketch a graph with AC, MC, and AVC curves to illustrate youranswer and show the profit or loss.arrow_forwardFigure: Cost Curves for Corn Producers Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce _____ of corn and earn an economic _____ equal to _____. 3 bushels; profit; loss, -$15 2 bushels; profit; $0 4 bushels; profit; just less than $80 per bushel 2 bushels; loss; just more than $80 per bushelarrow_forward
- A computer company produces affordable, easy-touse home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. a. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. b. At what price is the zero-profit point? At what price is the shutdown point? c. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss. d. If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.arrow_forward14. Zero economic profit earned by firms in a perfectly competitive market indicates that A firms will exit in the long run.B total revenue covers all variable costs of production exactly.C MR < AR.D P = ATC.E zero normal profit.arrow_forwardQuestion Calculate MC, AVC, and total fixed costs for the data below: Output Total Cost 0 20 1 25 2 30 3 35 4 40 5 45 6 50 7 55 8 60 Sketch the MC and the AVCcurves. Given that each output is sold at $8.5, calculate Average Revenue, Marginal Revenue, and profitarrow_forward
- only typed answer Assume a competitive firm faces a market price of $120, a cost curve of: C = 13q3 + 20q + 500, and a marginal cost of: MC = q2 +20. What is the firm's profit maximizing output level? ?? Units (round your answer to two decimal places) What is the firm's profit maximizing price? ??? (round to the nearest penny) What is the firm's profit? ??? (round to the nearest npenny) In the short-run, this firm should ?? produce or shut down??arrow_forwardFollowing is Ahmed’s competitively firm data and solve all the parts and subparts: Output (Q) Total Cost Total Revenue 0 62 0 30 90 40 60 110 80 90 126 120 120 138 160 150 150 200 180 165 240 210 190 280 240 230 320 270 296 360 a. Find the profit maximizing output. b. Find: a. FC b. VC c. ATC d. AFC e. AVC f. MC c. Find the efficient scale of output. d. Draw all the curves for the variables in part b using two-dimensional space.arrow_forward10. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $16 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Quantity Average Variable Cost Total Cost Marginal Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) 0 16 1 1 2 2 3 3 4 4 5 5 6 6 The equilibrium price is currently $10. Each firm produces __________ units, so the total quantity supplied in the market is _________ units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will _______ , quantity demanded will ________ , and the quantity supplied by…arrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax