Q: Explain why firms face different costs in the long run than in theshort run.
A: The firm is operated under Short-run means its production is for a short period of time for e.g. One…
Q: After a campus pub increases its output from 3 kegs of beer per day to 11 kegs of beer per day, its…
A: (a) Marginal resource cost, (MRC)= $(550-135)/ (11-3) = 415/8 =$ 51.87
Q: of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If…
A: The marginal revenue curve is a horizontal line at the market price, implying perfectly elastic…
Q: You produce and sell Cillipods. Your average cost (in dola Cillipod) for manufacturing q Cillipods…
A: TC = q x AC = q3 - 30q2 + 5000 MC = dTC/dq = 3q2 - 60q
Q: ist and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines.…
A: The firms incur a certain amount of cost to produce a certain amount of output. Production cost is…
Q: Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost…
A: The equilbrium price and quantity of a good sold in a competitive market are determined by the…
Q: tal cos
A: The theory of cost-of-production states that the price of an object or a condition is in turn being…
Q: 2. Suppose the total cost function of a firm that produces hotdogs is C= 150q - 4q° + 29' where q is…
A: Answer to the question is as follows:
Q: A Milton company works in perfect competition market, its total cost curve in short run is given in…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 20 300 30 480 |40 700 50 1000 (a) Calculate the total cost, average variable cost, average total…
A: Total cost is the sum of the variable cost and the fixed cost.
Q: Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases…
A: Cost is the expenditure that is incurred in producing goods and services. It has two components that…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: * SOLUTION :- Given that ,
Q: The following table shows data for quantity (Q), variable cost (VC), and fixed cost (FC) for a ski…
A: Since you have posted multiple questions, will be answering only the first part.
Q: Required a. How much is the fixed cost to produce the natural-organic oil? b. How many barrels of…
A: The fixed cost does not change with change in the level of output. The variable cost changes with…
Q: Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also…
A: The marginal cost curve refers to the curve that shows additional cost of production when the firm…
Q: a. What is Mr. Leung’s fixed cost? b. For each level of output, calculate the variable cost (VC).…
A: Fixed cost = cost when output is zero TVC = TC – FC ATC = TC / Qty AFC = FC / Qty AVC = AVC / Qty MC…
Q: Hana Co. for Catering provides catered meals, and the catered meals industry is perfectly…
A: Total Cost=Fixed Cost+Variable CostAverage Fixed Cost (AFC)=Fixed CostQuantityAverage Variable Cost…
Q: Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question…
Q: Suppose the current market price for bar stools is $25 each. My friend René's profit-maximizing…
A: Profit is maximised at a level where marginal cost is equal to market price.
Q: C. The following table shows the short-run average total costs for five successively larger plant…
A: Economies of scale and diseconomies of scale are important concepts in economics. Economies of scale…
Q: Should a firm shut down if its revenues is TR = $1,500 per week and: a. its variable cost is TVC =…
A: Shut down: It refers to a position of a firm when variable cost greater than the revenue earned.…
Q: y has fixed costs of $10 per day and variable costs of $ 1 per loaf . Its oven can handle up to 50…
A: Total cost = Fixed Cost + Variable cost Average fixed cost = Fixed CostQuantity Average Variable…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: There are 3 possibilities in short run: If the firm uses only 1 factory then its short run will be…
Q: What are the fixed and variable costs of (a) a pizza shop, (b) an Internet service provider, (c) a…
A: There are various costs associated with the process of production and the main two categories of…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: When an increase in input leads to a proportional increase in output, this is known as a constant…
Q: If you have the following table that shows the costs of certain firm Fixed cost Variable costs Total…
A: The formula for the following are: FC = Cost when Q=0 TC = FC +VC MC = TCn -TCn-1
Q: KK Enterprises' average total cost curve (ATC) has shifted up, but its average variable cost curve…
A: Any change in Fixed Cost does not affect the Variable Cost and Marginal Cost. Therefore, a tax on a…
Q: A Chinese high technology manufacturing firm has a production function of (based on Zhang. et al.…
A: Given information: Production function: q = 13L0.20K0.80w= $2r = $8
Q: 1. Emad is a lettuce supplier in a perfectly competitive lettuce market in Kuwait. If the demand for…
A: Given Demand of lettuce boxes is given by QD=40,000-10,000P ........(1) Individual…
Q: a. Complete the table by filling in the values for profit, marginal revenue, and marginal cost. b.…
A: Total cost is the cost incurred by the firm for the production of final goods. The cost is divided…
Q: Suppose a factory's marginal cost has a minimum value of $2; its average variable cost has a minimum…
A: find below the answer.
Q: Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal…
A: TVC, TC, and TFC (I) TC is partitioned into two sections TFC and TVC like that TC = TFC + TVC.…
Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…
A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…
Q: find the quantity where ATC is at a minimum and find the quantity that is the most efficient…
A: Below is the given table:
Q: The owner of Tie-Dved T-shirts, a perfectly competitive firm, hires you to give him economic advice.…
A:
Q: (iv) How many 750ml bottles of dish washing liquid should Teddy J produce per month if he wishes to…
A: Profit maximizing quantity is when marginal revenue MR = Marginal cost MC. To find the quantity…
Q: Yennefer produces spells. Suppose q is the quantity of spells produced. Her Total Costs are given by…
A: Average total cost = total cost / Q
Q: Complete the following table of costs for a firm. (Note: enter the figures in the MC column between…
A: As per the guidelines, we are allowed to solve only the first three subparts. Please post the…
Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…
A: Average cost is the per unit cost of production
Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…
A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…
Q: Kate's Katering provides catered meals, and the catered meals industry is perfectly competitive.…
A: Total cost is the cost incurred on the input during the production process. Total fixed cost refers…
Q: Cost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm…
A: Marginal is the cost of producing 1 additional unit of output.
Q: A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and…
A: In this case, the firm has two different technological options where technological option A is the…
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: Cost basically refers to the total expense that occurs in a production process. It includes both…
Q: 2.10 The long-run average cost curve for an industry is repre- sented in the following graph. Add…
A: The long-run average cost (LRAC) curve, which has a U-shape, plots all potential production levels…
Q: Explain average fixed cost (AFC)?
A: Costs are the sums of money spent by producers on various variables of production in order to…
Q: Which is most hikely to be a constant cost industry? Oa Widgits do not require specialized equipment…
A: The constant cost industries are those industries whose average cost of production (AC) remains the…
Q: Under what conditions will a competitive firm continue to grow in size? O Until it achieves minimum…
A: Competitive firm would grow until diminishing returns sets in.When increasing returns are there,its…
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- Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders.What is die difference between accounting and economic profit?Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $150
- A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta areaor Bekasi. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question:A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.b. Sketch a crossover diagram that illustrates these conditionsc. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?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.Shakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340
- Amonofoly is Charar terized the average Cost Ac- 0/44 and the margzaa . COst MC =0/2 Where 0 Is the 9uantity Produced, the demand for the monoP0LY good 7s Cl= 10-P. Where P Ts Price the Pair of OPtimai uanETEY and Price of the Profit maximizing mono Poly Isnave an equai numper or tnree types or customers, ana tnat tnese customers reservation prices are as IImustratea in tne figure peiow. Printer Bundle Laptop $850 $1,000 $600 Customer A $100 $150 $50 $950 $1,150 $650 Customer B Customer C Assume for simplicity the marginal cost of production for laptops and printers is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total? To maximize profit using individual prices, the firm should charge a price for laptops of p= 600 and a price for printers of p= 100 (Enter your responses as whole numbers.) In turn, profit is T= $ 2000|. (Enter your response as a whole number.) After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together as a…Mc Graw Hill apter 10 Problems 1 01:49:26 eBook Price ($) F OU 60 40 20 0 4 8 Output 12 MR 16 of $ Prev D₁ Saved 20 1 of 5 Instructions: Enter your answer rounded to 2 decimal places (i.e. dollars and cents). If there is an economic loss, be sure to include a negative sign (-) in front of your answer. This firm is incurring a (Click to select) ‒‒‒ Help Next > Save & Exit Submit Check my work 2
- Activity Frame A 2191 A 1878 1565 n 1252 939 626 0 A + + 0 5 10 TOTAL REVENUE (Dollars) 3130 2817 2504 MARGINAL REVENUE (Dollars) 313 Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $ 250 Based on your answers from the previous question, and assuming that the marginal revenue curve is a straight line, use the black line (plus symbol) to plot the firm's marginal revenue curve on the following graph. 225 200 175 150 125 100 75 50 25 0 15 20 25 30 35 40 QUANTITY (Number of units) -25 -50 0 A 45 50 5 10 15 Total Revenue 20 25 30 35 QUANTITY (Units) 40 45 50 Marginal Revenue (?) Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is…Please no written by hand solutions Q Lawns TVC 0 50 2 100 4 300 6 500 8 1100 10 1800 12 2900 A perfectly competitive firm is mowing laws. They have variable costs of gas and maintenance of the mowers. They also have fixed costs of $2000 for the mowing season. If the price of a lawn mow is $300, what will be the optimal amount of lawns mowed?A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…
