If the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit, suppose the price of Y decreases by 25%, ceteris paribus, should the farmer continue producing 500 units of output? Explain why or why not.
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- Completed 58 out of 60 uestion 31 of 60 If output falls below equilibrium, marginal cost will be higher than the price. O True O False LEGO. Marginal Cost Suppose the monthly total costfor the manufacture of 19-inch television sets isC(x)= 2546 + 98x, where x is the number of TVsproduced each month.a. What is the slope of the graph of the total costfunction?b. What is the marginal cost for the product?c. Interpret the marginal cost for this productAn SMSE has a production process with fixed lot size A. The table belowshows the total output and the number of workers:No. of Workers (L) Total Output (Q) 0 0 1 10 2 30 3 50 4 56 5 59 6 60 7 60 8 58(a) Determine marginal productivity of labour and average productivity oflabour for each unit of labour. (b) Show the three stages of production (c) Suppose the market price of the output Rs. 150 and the wage rate isRs. 900, how many workers would this firm hire? What if the pricedecreases to Rs. 100?(d) Suppose the market price increases to Rs. 250, what is the highestwage rate the firm would be willing to pay to…
- same opcions in the first blank spaceA firm produces one good and has average cost equal to 115, average variable cost equal to 75, and fixed cost equal to 5000. 3P. How many units does the firm produce?At Yennefer's current production level, a extra bunch of herbs adds 19 extra spells. Each bunch ofherbs costs $54. What is Yennefer's Marginal Cost of an extra spell?
- For a restaurant that sells hamburgers, which of the following costs would be a variable cost? O The cost of the steak that is used in producing the hamburgers. O The cost of promoting itself on social media each year. O The fines the restaurant pays for violation of recycling laws every year. O The rent that the restaurant pays every year. MacBook A esc F1 F2 F3 000 FA F5 F6 @ 2$ 4 Q W E tab Y S D F G caps lock mift C V く ヒ # 3 A.A farmer has 8 hectares of agricultural land. The farmer will plant the land with rice and corn. 3 tons of rice can be harvested from 1 hectare of rice field, while 4 tons of corn can be harvested from 1 hectare of corn field. This farmer wants to get a yield of no less than 30 tonnes. If the cost of planting 1 hectare of rice field is 500 thousand and the cost of planting 1 hectare of corn field is 600 thousand. Then what is the minimum cost that must be incurred by the farmer?2500 2000 1500 Returns te scale: 0.33 1000 Price 2 10 15 20 25 30 Size dength in feet) 35 40 Rental price 100 The interactive above is from the loarning object, it will automatically find the profit maximizing length of the truck Adam should rent at given prices, rental rates, productivities, and returns to scale. It only the productivity of the truck Adam chooses to rent decreases, which of the following would be true at the new profit maximizing level of output and length of truck? Select the two that apply O A decrease in marginal cost O A decrease in total costs O A decrease in total revenuo O An incroase in the amount of labor Adam hires Revenue
- How do transportation costs affect attaining economiesof scale in brewing? How might a large beer producerdecide on the optimal number of breweries to operate?Based on the demand and supply functions figure below for a production environment, if the fixed cost decreases by $10,000 while all the other variables remain the same, the quantity of production required to maximize the total profit OA. will increase OB. cannot be determined fom this figure OC. will remain the same OD. will decrease $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 50 0 200 S 400 600 Supply function 800 Demand function 1,000 Quantity 1,200is generally determined by the consumer rather than by the producer. In other words, if a customer perceives that he receives more in benefits than what he has to pay for those benefits (or, he gets more in benefits than what he perceives it costs him to acquire those benefits), then he is probably going to be fairly happy with that product in relation to itsS cost.