Which firm is/are able to break even? Which firm(s) is/are able to break-even?Output P123451515151515Price and costs are in thousand pesosOutput P1152345FIRM IIAC AFC AVC11 561511 2.57.51511.67 1.671015131.25 11.751514113Price and costs are in thousand pesosFIRM IVOutput1234AC AFC AVC26 111523.5 5.51821.67 3.671822.75 2.752023 2.2 20.8FIRM IAC AFCAVCP1523 10 1315155101515 3.33 11.671517.52.5 151521219Price and costs are in thousand pesos5Output1234FIRM IIIP15151515515Price and costs are in thousand pesosAC2821192021AFC AVC2612 16432.46557815151718.6MC1521182624MC611151718MC137152535MC1614152325

In perfectly competitive market, there are many firms selling identical goods. Consumers can not…

15 22.75 2.75 15 23 2.2 Price and costs are in thousand pesos M 4 5 FIRM II AC AFC 11 5 15 11 2.5 15 11.67 1.67 15 13 1.25 1 15 14 Price and costs are in thousand pesos Output 1 2 3 4 5 Output 1 2 3 4 5 Output 1 2 P 15 FIRM I AC AFC AVC 23 10 13 15 5 10 15 3.33 11.67 15 17.5 2.5 15 15 21 2 19 Price and costs are in thousand pesos 3 4 P 15 15 15 P FIRM III AC 28 21 19 20 21 15 15 15 15 5 15 Price and costs are in thousand pesos 20 20.8 AVC 6 7.5 10 6 4 3 2.4 . 11.75 13 AFC AVC 12 16 15 15 17 18.6 26 24 MC 6 11 15 17 18 MC 13 7 15 25 35 MC 16 14 15 23 25

15 22.75 2.75 15 23 2.2 Price and costs are in thousand pesos M 4 5 FIRM II AC AFC 11 5 15 11 2.5 15 11.67 1.67 15 13 1.25 1 15 14 Price and costs are in thousand pesos Output 1 2 3 4 5 Output 1 2 3 4 5 Output 1 2 P 15 FIRM I AC AFC AVC 23 10 13 15 5 10 15 3.33 11.67 15 17.5 2.5 15 15 21 2 19 Price and costs are in thousand pesos 3 4 P 15 15 15 P FIRM III AC 28 21 19 20 21 15 15 15 15 5 15 Price and costs are in thousand pesos 20 20.8 AVC 6 7.5 10 6 4 3 2.4 . 11.75 13 AFC AVC 12 16 15 15 17 18.6 26 24 MC 6 11 15 17 18 MC 13 7 15 25 35 MC 16 14 15 23 25

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exhibit 23-8 Price and Cost (0) 11 10 O Tvm A WATC AVC 70 90 100 Quality O 5300- O $700 © 51,000/- o $400 190 Price and Cost (ddium) || 10 8 ATC 7 100 150 200 Quantity AVC Refer to Exhibit 23-8. What is the total variable cost of firm A at the profit-maximizing (or loss-tninimizing) level of production?
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.
Output TFC TVC TC MC ATC A 25 25 ---- -- ------- 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 2nd unit of output? Cannot be determined. 15 25 30 O O O O
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
Plant sizes get larger as you move from ATC-1 to ATC-4. Output АТС-1 ATC-2 ATC-3 ATC-4 1,500 $ 10 15 $ 20 $ 30 2,000 8. 12 17 25 2,500 9 10 15 20 3,000 12 8 13 18 3,500 15 11 16 4,000 18 10 9 14 4,500 20 12 7 12 5,000 24 15 11 10 5,500 29 19 13 6,000 35 25 15 9 In the long run, the firm should use plant size ATC-4 for what level of output? Multiple Choice less than 3,000 3,000 to 3,500 5,000 to 5,500 4,000 to 4,500
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a. ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level.b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. • Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $ 10,000• Forgone rent $ 10,000• Raw materials $ 50,000• Other payments $ 20,000• Forgone interest $ 7,000
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You're company manufactures on large scale unit and it has been shown that marginal or variable cost are given by this function (92-2x)sh where xis the number of units of output per annum the fixed costs are 800000 annually, it has also been shown that the marginal revenue which is the gradient ot the total revenue is given by (112-2x) ... required determine by integration the total cost, the total revenue , the break even point of your company and the number of units of output that would maximise total revenue
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A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?