$10,ATCMC9.8AVC431146.78.9 10Quantity (in 1,000s)What is:(1) AVC at 6000 units of output?(2) ATC at 6000 units of output?(3) AFC at 6000 units of output?(4) TVC at 6000 units of output?(5) TFC at all levels of output?(6) TC at 10,000 units of output?(7)does diminishing returns set in?Suppose this firm operates in a perfectly competitive market.(8) If the market price (the price the firm must take) is $3, what quantity maximizes profits? What is profit?(9) If the market price (the price the firm must take) is $5.50, what quantity maximizes profits? What is profit?(10) If the market price (the price the firm must take) is $9, what quantity maximizes profits? What is profit?Cost per unit

(1) The AVC corresponding to 6000 units of output is $4 per unit Hence, the AVC at 6000 units of…

Answered: $10 ATC MC 9. 8. AVC 7 6. 5 4 3 1 1 2 3…

$10 ATC MC 9. 8. AVC 7 6. 5 4 3 1 1 2 3 4 5 6 7 89 10 Quantity (in 1,000s) What is: (1) AVC at 6000 units of output? (2) ATC at 6000 units of output? Cost per unit

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 6SQ

See similar textbooks

Related questions

Q: If AFC is $9 at an output of 100 units, and ATC s $11 at the same output, it follows that: TVC is…

A: there are mainly two type cost , Fixed Cost and Variable cost , Average cost is the per unit cost…

Q: Costs, P P₁ = $20 ATC, = $15 Find Q where MR = MC Q₁ = 7 MC -MR₁ ATC Q

A: A profit-maximizing firm produces at the intersection point of MR and MC in order to maximize…

Q: A shoe company will make a new type of shoe. The fixed cost for the production will be $24,000. The…

A: Answer: Fixed cost for a firm remains unchanged in the short run thus it does not vary with the size…

Q: our firm has discovered a cheap and efficient technology of turning used plastic bottles and bags…

A: 2000 helmets are sold every year at a price of $10 per helmet. Hence the total revenue earned from…

Q: What is the atc of 5 units? A 50 B 52 C 53 D 55

A: ATC refers to the cost per unit of output ATC = Total Cost*Quantity

Q: ext year after Matt decides to renew his lease. (maybe unwisely depending on how you swered the…

A: It is given that Chris Hemsworth lies about body shredding capabilities of rutabaga and the demand…

Q: The total cost of an MBF plant is 35,000 units if it produces 500 products, and a total cost of…

A: Given information When Q=500, Total cost =35000 When Q=1000, Total Cost=6000 P=100

Q: VT Company's breakeven point is 4,000 units. It's product sells for $20 per unit and has a variable…

A: Total cost is a sum of fixed cost and variable cost. Fixed cost does not depend on quantity and…

Q: A firm is thinking about consolidating its mobile battery assembly in one location. The leading…

Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total…

A: In case of multiple questions , we answer only the first question . The answer to the first…

Q: A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 -3*F2. Total cost is TC = $2*L+…

A: Q= -2.4 + 20L - 0.5L2 + 30 K - K2 + 15F - 0.3F2 TC = 2L + 2.5K + 1.75F Price (P) = $200

Q: Copy and paste, or type, the following into cells A1:D5 of an Excel spreadsheet: Input data fixed…

A: The fixed cost is the cost which do not change with the change in the output level, that is, fixed…

Q: A firm produces 5000 waterproof cellphone cases, which they sell for $30 each. They have $35,000 in…

A: Answer to the question is as follows:

Q: A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In…

A: Suppose the manufacturing company produce = Q units The total fixed cost (TFC) = Building +…

Q: Output from a process contains 0.02 defective unit. Defective units that go undetectedinto i nal…

A: Given: The proportion of defective units from a process contains = 0.02 units The undetected units…

Q: A large architectural firm has just landed a contract to build a hospital. Nine architects currently…

A: In economics, total cost is the sum of all costs incurred by a firm in producing a certain level of…

Q: Question 12 Table: Variable Costs for Lawns Quantity of lawns Variable costs $0 10 100 20 300 30 500…

A: Total cost of 20th unit =$35*20=$700 Fixed cost of 20th unit =Total cost - variable cost…

Q: TC = 81 + 16Q + 3Q2 What is the average variable cost when 10 units are produced?

A: Total cost is sum of fixed cost and variable cost. Fixed cost is the cost which is not dependent on…

Q: firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2.…

Q: TC = 217 + 55Q + 4Q2 What is the average variable cost when 10 units are produced? Enter as a valu

Q: Carlota Music Company estimates that the marginal cost of manufacturing its Professional Series…

A: As given marginal cost is C'(X) = 0.02X +100 and Fixed cost = $4000/ month

Q: For output level Q, per unit costs of B are: Long-run ATC Output Multiple Choice obtainable and…

A: In the given graph, long-run average total cost curve of a firm is given.

Q: Refer to (Total Time = 20 minutes (VA time) + 10 minutes (NVA time) = 30 minutes; Total Cost =…

A: Given in the question, we have time decrease in two ways: 1. TIme on order board decreases from 5…

Q: The following data relate to factory overhead cost for production of 7,000 computers Actual Variable…

A: Answer 1)

Q: 12- Return and replacement of products purchased online are ___________ a. Less time consuming b.…

A: Online purchase have made everything simple for the consumers, as anything you wish for is available…

Q: A manufacturer produces a certain product at a labor cost of P 315 per unit, material cost of P 100…

A: As given labor cost = 315/ unit Material cost = 100/ unit Fixed cost = 461600 Variable cost = 3/…

Q: Northwest manufactures a product requiring 0.5 ounces of platinum per unit The cost of platinum is…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is…

A: The production level at which the costs are equal to the revenues for a product is known as the…

Q: Total Revenue Total Cost $25 $49 $69 $91 $117 $147 $180 Output $0 $30 $60 $90 $120 $150 $180 In the…

A: The firms, or businesses get involved in the production process, where they tend to produce goods,…

Q: Total costs increase from $1,500 to $1,800when a firm increases output from 40 to50 units. Which of…

A: With MC is constant then it means that that the cost of producing each 10 units is same. Therefore…

Q: Transportation costs per ton of product vary with distance. For trucks the function is: TCt = 3 +…

A: (1)Substitute d = 1,2,...,10 in TCt,TCr,TCb to get the following table:

Q: (1) (2) (3) (4) (5) Variable Input Price per Marginal Cost Total Fixed Variable Input Cost Output 1…

A: Marginal cost is the change in total cost due to change in output produced. Marginal cost = (change…

Q: $10 MC ATC 9 8 AVC 7 2 1 2 3 4 5 6 7 8 9 10 Quantity (in 1,000s) What is: (1) AVC at 6000 units of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2.…

A: Given, The production function, Q = -2.4+ 20 L - 0.5L2+30K - 1.00K2+15F- 0.3F2 The total cost…

Q: Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000,…

A: Total cost refers to all costs incurred by a firm in producing a certain level of output. Total cost…

Q: Given the information that follows: Sales - 750,000, explicit costs 450,000, return you could have…

A: Hi, thanks for the question. Since you posted multiple questions, we will answer for first question.…

Q: A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed…

A: FC = $800 , Variable Cost = 1/4 x+1210 Total Cost (TC) = Fixed cost + Variable cost Xquantity Total…

Q: A company has determined that the price and the monthly demand of one of its products are related by…

A: Given information: The demand function for company's product: D=375-P0.5 .... (1)…

Q: TC = 210 + 40Q + 2Q? What is the average fixed cost when 5 units are produced? Enter as a value. 42

A: Average Fixed cost is the per unit cost of fixed cost , here we calculate the average fixed cost…

Q: A construction contractor has undertaken a job with 7 major tasks. Some of the tasks can begin at…

A: Solve with the help of formula

Q: Cost LRAC 40 30 20 N 10 100 200 400 800 Output a. What is the cost per unit when the firm produces:…

A: Total Cost per unit of output is also called average cost. The figure shows long run run Average…

Q: tc=1500+15q+6q^2+q^3 1=the total fix cost at 1000 and 500 units of output? 2=the total variable…

A: We have the following information- The total cost is given as- tc=1500+15q+6q2+q3

Q: TC = 116 +27Q+4Q² What is the average fixed cost when 5 units are produced? Enter as a value, ROUND…

A: Answer: Given, Total cost function: TC=116+27Q+4Q2 Fixed cost: fixed cost remains fixed in the short…

Q: TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the…

A: Given That an 50% increase in price would cause an 80% reduction in the quantity of product sold.…

Q: Question No. 6 A firm manufactures cars at its plant in Swindon. At a capacity of 100 cars per week…

A: In the production process, the producer uses inputs in such a way that it minimize its cost of…

Q: 09. Consider the economic order quantity, with demand of 1650 unit per month (30 days), setup cost…

A: Time between orders is an ecommerce metric that measures how long customers take to place a next…

Q: 1. Cowboy Metal Cutting produces a laser-cut part based on customer orders. The number of units…

A: a). To solve this problem, the crossover point of output will be calculated, first between CT1 and…

Q: Required 1-a. Calculate the contribution margin for 6,000 units for both the current and special…

A: Variable cost is the production cost that will change with the change of production level of the…

Question

$10
,ATC
MC
9.
8
AVC
4
3
1
1
4
6.
7
8.
9 10
Quantity (in 1,000s)
What is:
(1) AVC at 6000 units of output?
(2) ATC at 6000 units of output?
(3) AFC at 6000 units of output?
(4) TVC at 6000 units of output?
(5) TFC at all levels of output?
(6) TC at 10,000 units of output?
(7)
does diminishing returns set in?
Suppose this firm operates in a perfectly competitive market.
(8) If the market price (the price the firm must take) is $3, what quantity maximizes profits? What is profit?
(9) If the market price (the price the firm must take) is $5.50, what quantity maximizes profits? What is profit?
(10) If the market price (the price the firm must take) is $9, what quantity maximizes profits? What is profit?
Cost per unit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Trending now

This is a popular solution!

Step by step

Solved in 7 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Question Two: The following data for a small farm operating in a perfectly competitive market are given in the table below. The price is $10 per yogurt. Q TC 100 10 200 20 280 30 330 40 360 50 380 60 390 70 425 80 500 90 610 100 750 Instructions: 1. What is the firm's decision at that price? (whether to produce or to shutdown), justify your answer. 2. Show the range of output at which the firm experience IMR and DMR. 3. Using excel, now suppose the price of strawberry yoghurt decreases to $5.5 per unit, what is the right decision firm should take, (produce or shutdown) justify your answer.
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.
A steel firm creates water pollution for a downstream fishery. The price and cost functions for steel and fish are as follows: Price of steel 30 Cost function for steel Csteel(s,x) 6s + 3s? – 20x + 2x² Price of fish 50 Cost function for fish Cfish(f,x) 20f+5f² + 14x +x? (a) How much steel (s), pollution (x) and fish (f) will the steel and fish plants produce if they are merged and act to maximize joint profit? (Maximise joint profit)
The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments. (please use excel/word) a)- If PFIZER is the sole vaccine provider given the following information, answer the questions below: Output Price/Unit Total Cost 1 5500 1000 2 5000 1200 3 4500 1500 4 4000 2500 5 3500 4000 6 3000 5700 7 2500 7500 8 2000 9400 9 1500 11400 10 1000 13500 Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well. (use excel) b)- Assume if many firms enter into the business of providing vaccine determine: How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER is forced to operate in? Also,…
1. A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $600,000 per month. The variable cost per thousand board feet is $125.50. The price charged will be determined byp = $550 – (0.4)D per 1.00 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?
what is coasian transaction cost?
Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.
Two firms, Thneeds-R-Us and Mucky Motors have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are as shown in the table below. What is the cost to Mucky Motors of moving from process B to process C? Process (smoke) Cost to Thneeds-R-Us ($/day) Cost to Mucky Motors ($/day) Multiple Choice O O $500 per day $250 per day $320 per day $180 per day A (4 tons. per day) 50 100 B (3 tons per day) 70 180 C (2 tons per day) 120 500 D (1 tons per day) 200 1,000 E (0 tons per day) 500 2,000
OUTPUT TOTAL COST 40 49 2 57 3 64 4 70 5 77 6 85 The TVC of producing 4 units of output is : The AFC of producing 6 units of output is: : The marginal cost of producing the fifth unit of output is: : The ATC of producing 5 units of output is:
5. In an FEA simulation, you did a mesh independence study. The results were compared with an experimental test and errors were plotted in Figure 7. a) Is the mesh with 8000 elements fine enough, and why? b) Is there another error source in the simulation and what type of errors could it be? Page 3 of 6 ENGG20071 Industrial Design & Product Case Studies Errors 60% 50% 40% 30% 20% 10% 0% 500 1000 2000 4000 8000 Figure 7 Errors plot against number of elements
the figure below, $/Q 174 125 118 80 m 59 MC AVC ATC n 48 40 28 u Q₂ Q3 Q4 Q5 O total variable cost at Q₂ units of output is represented by the area absv (i.e., TVC(Q)area absv) and total fixed cost at Q₂ units of output is represented by the area vsQ₂0 (i.e., TFC(Qs) - area vsQ₂0). total variable cost at Q3 units of output is represented by the area ruQ,0 (i.e., TVC(Q)- area ruQ,0) and total fixed cost at Qs units of output is represented by the area zfnk (i.e., TFC(Qs) - area zfnk). O total cost at Q4 units of output is represented by the area adQ40 (.e., TC(Q) - area adQ40) and total fixed cost at Q4 units of output is represented by the area adgi (i.e.. TFC(Q4) - area adgi). O total variable cost at Q₂ units of output is represented by the area absv (i.e., TVC(Q)- area absv) and total fixed cost at Q₂ units of output is represented by the area vsQ₂0 (ie.. TFC(Qs) - area vsQ,0). total variable cost at Q3 units of output is represented by the area zhQ₂0 (i.e., TVC(Q)area zhQ,0) and…
Cost Per Year Q₁ O Q₂ QQQQ O Q4 TC VC At what level of output does average total cost equal marginal cost? FC Output