EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 9, Problem 5RQ
To determine
Calculate different costs.
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Students have asked these similar questions
Situation 21-1
Diane's Donuts will begin selling donuts next week. Diane figures that
the average variable cost to make each donut will be constant at $0.30.
She has already paid $20,000 for the donut-making machinery and one
year's rent.
Refer to Situation 21-1. What will Diane's total variable costs be if she sells 36,500 donuts in one year?
$10,950
O $18,450
$22,080
$12,500
In the short run, if average variable costs equal $60, average
total costs equal $70, and output equals 100, the total fixed
costs should equal
O $10.
O $1,000.
O $5,000.
O $13,000.
The table below shows cost data for WipeOutSki Company which manufactures skis for beginners. If the
company's fixed costs are $30, what is the marginal cost of five units of output?
Variable
Cost
Fixed
Cost
Total
Cost
Average Variable
Cost
Average Total
Cost
Marginal
Cost
Quantity
$30
1
$10
$30
$25
$30
$45
$30
$70
$30
$100
$30
B.
$135
$30
O $45.00
O S30.00
O S25.00
2)
3.
4)
69
Chapter 9 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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- Cost 8 Firm A Firm C FIGURE 8-1 O O O LRAC Output LRAC Output Cost Cost Firm B Firm D LRAC Output LRAC Output 4 Refer to Figure 8-1. For which of the four firms would the family of short-run average total cost curves lie below the LRAC? 选择一项: O A. Firm A O B. Firm B C. Firm C D. Firm D E. none of the four firmsarrow_forward3. A firm has a total fixed cost of $60 and total variable costs as indicated in the table. Complete the table and check your cal- culations by referring to problem 4 at the end of Chapter 10. L09.3 a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relation- ships to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points. C. Explain how the location of each curve graphed in question 3b. would be altered if (1) total fixed cost is $100 rather than $60 and (2) total variable cost is $10 less at each level of output.arrow_forwardConsider the following production schedule: Output per hour Total Cost 0 $ 1 $ $ $ $ 4.00 7.00 8.00 12.50 17.20 $ 22.00 $ 29.00 In the above table, the firm's total fixed cost of production is 2 3 4 5 сл LO 6 $99.70 $4 $29 $3 $7arrow_forward
- In the short run, a firm 's output level is 10 units. Its total cost is $4000 and its average fixed cost is $100. What is this firm's average variable cost (AVC) of producing 10 units? Select one: O a. AVC-$275 O b. AVC= $250 Oc AVC= $300 O d. AVC= $400arrow_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_forwardAccording to the Law of Diminishing Returns As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to decline.. Investing more money into the same financial investment will always result in a diminished fiancial return. O If a firm makes another type of product available to its customers, then it will generate less revenue from its new type of product compared to its existing products. As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder for a firm to increase production.arrow_forward
- The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Qi marks the point of tangency between ATC1 and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Q2). ATC, ATC5 ATCA LRATC ATC, ATC, Q, Q5 OUTPUT COST PER UNITarrow_forwardThe table below shows cost data for producing different amounts of cough syrup. Use the given information to find the missing cost data. Quantity 0 1 2 3 4 LO 5 Total Cost in $ 120 150 206 556 -> Average Fixed Cost in $ Average Variable Cost in $ 60 30 24 9. 30 22.5 28.6666666666667 47.25 -> Marginal Cost in $ 30 15 103 247 ←arrow_forwardThe owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some economic advice. He has told you that the market price for his shirts is $12 and that he is currently producing 200 shirts at an AVC of $10 and an ATC of $14. What do you recommend he do in the short run? O shut down continue at current capacity O operate O exit O expandarrow_forward
- Betsy's Bangles produces and sells woven bracelets. The table shows information about the number of workers employed, daily bracelet production, and the marginal product of labor (MPL). Use this to answer the questions. You must calculate the bracelet values that are absent to answer the question. How many bracelets can be produced by 5 workers? bracelets from 5 workers: Workers 0 1 2 3 4 5 Bracelets 0 1 * 39 * * MPL www 1 26 12 8 4 braceletsarrow_forward(Figure: Representative Firm) The figure shows the cost curves for a representative firm. At an output level of five units, the average fixed, average variable, and average total costs, respectively, would be and O $40; $80; $120 O $120; $66.67; $186.67 O $100; $120; $220 O $66.67; $53.33; $120arrow_forwardCost Plant 1 Plant 2 ACI AC2 w Q1 Q2 Q3 Q4 Plant 3 Select one: O A. Q₁ and Q4. O B. Q₁ and Q3. O C. Q4 and Q5. O D. Q₁ and Q5. O E. Q₁ and Q₂. 05 AC3 LRAC Quantity of Output Refer to the graph above to answer this question. Between what output levels do constant returns to scale exist?arrow_forward
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