MICROECONOMICS-CONNECT PLUS ACCESS
21st Edition
ISBN: 9781260430776
Author: McConnell
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 9.5, Problem 2QQ
To determine
Average fixed cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Price equals $20, quality equals 400 units, unit cost equals $15, implicit cost equals $4000. What does economic profit equal?
The vertical distance between ATC and AVC measures: Ā
a. marginal cost.
b. total fixed cost.
c. average fixed cost.
d. economic profit per unit.
Average Fixed Costs (AFC) is equal to
A. Average Total Cost (ATC) - Average Variable Cost (AVC).
B. [Total Costs (TC) - Total Variable Costs (TVC)] / Quantity (Q).
C. Total Fixed Costs (TFC) / Quantity (Q).
D. all of the above.
E. none of the above.
Chapter 9 Solutions
MICROECONOMICS-CONNECT PLUS 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. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
Knowledge Booster
Similar questions
- Q: A farmer plane to harvest maize on his specific land. Discuss all factors of production whichhe need to harvest the whole season of crop. Also mentioned their rewards. Differentiate between economic profit and accounting profit, implicit explicit cost, total cost, variable cost, & average cost?arrow_forward(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the productās first two years, the companyās profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the companyās best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose thatā¦arrow_forwardno copy from chegg or other sources only original answers please Give reasons, when average cost increases as the total output increases for an increasing cost industry?arrow_forward
- Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.arrow_forwarda. Give 2 examples of explicit cost b. Give 2 examples of implicit cost/opportunity cost/cost of ownership/cost of equity capital c. Imagine yourself as an entrepreneur. Pick any business you like. Run some numbers to calculate your accounting profit and economic profit. Show your numbers. Note: Make up those numbers yourself. d. After you have run the numbers, do you still want to start the business? Why or why not?arrow_forwardTrue/FalseĀ Marginal cost is the addition to the total cost when more unit of output is being produced.arrow_forward
- 40) When a decrease in the scale of production leads to higher average costs, the industry exhibitsA) diminishing returns. B) decreasing returns to scale.C) constant returns to scale. D) increasing returns to scale.arrow_forwardIf an increase in output size results in reductions in average costs, this is known as: Ā Ā Answers: A.Ā Economies of scale. Ā B.Ā Half-way rule of marginal revenue. Ā C.Ā Diminishing marginal returns. Ā D.Ā Rising average total cost.arrow_forwardIndicate on the graph the areas that represent Total Revenue, Total Cost, and Profit.a. When P>ATCb. When P<ATCc. When P=ATCarrow_forward
- Financial Data Daily demand: 1,000 cases Fixed cost: $5,000 per week Variable cost ā¢ Weekdays: $7 per case ā¢ Sundays: $12 per case Generic aspirin production ā¢ Unit price: $10 per case Brand-name aspirin production ā¢ Weekly demand: 1,000 cases per week Unit price: $30 per case Find: (1) How to schedule the product mix, and (2) is it worth operating on Sundays?arrow_forwardA computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Ā OutputĀ FixedĀ Cost VariableĀ Cost Total Ā Cost Marginal Ā Cost AverageĀ Cost AverageĀ Variable Cost 1 $250 $700 $950 $700 Ā Ā 2 $250 $925 $1175 $225 Ā Ā 3 $250 Ā Ā $315 Ā Ā 4 $250 Ā Ā $360 Ā Ā 5 $250 Ā Ā $400 Ā Ā 6 $250 Ā Ā $450 Ā Ā 7 $250 Ā Ā $550 Ā Ā Ā If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?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
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher: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