Urban Decay Cosmetics produces q units of setting sprays and their short-run total cost is given by STC = 2q2-15q+162. Which value of q will minimize Urban Decay’s average cost?
Q: Universal’s variable cost to rent a car is $15. Assume the fleet size is fixed at 21,666. How many…
A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…
Q: Why will firms in most markets be located at or close to the bottom of the long-run average cost…
A: In the long run, all the costs are the variable costs. In long run, costs are lower than that of in…
Q: Which of the following is true of fixed costs? a. Fixed costs can be changed, but it is…
A: Fixed costs are those that do not change with changes in the output level produced. They are the…
Q: Economies to scale refer to Select one: a. the point at which marginal cost equals average cost.…
A: "Long-run average cost curve is used to determine the scale of production process."
Q: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…
A: The law of deminishing marginal returns is one of the key standards of financial matters and is…
Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…
A: The Average fixed cost is constantly declining. The average variable cost curve is lower than the…
Q: Consider the table below that describes the costs associated with producing a good (Q). Total…
A: Marginal cost refers to the additional cost of producing one more unit of output.
Q: draw the marginal and average cost curves of companies p and q where Firm p: Cost= 4Q Firm q: Cost =…
A: Answer - Average Cost = Average cost is cost per unit Marginal cost = It is the cost a firm…
Q: Think about several different types of industries or markets and the amount of time it might take to…
A: The measure that depicts the size of business operations that are being measured by the maximum…
Q: Use Exhibit 2. For Comfy Chair Factory, which of the following statements is (are) correct? (x) The…
A: Total cost is the summation of Fixed cost and variable cost . Where varible cost when there is no…
Q: Consider the following types of firms. For each one, the long-run average cost curve eventually…
A: The expenses that are being incurred for carrying out transactions of the business are known as…
Q: In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not…
A: The marginal cost- is the difference in overall production costs resulting from manufacturing or…
Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…
A: Marginal product of labor is the additional output produced by employing an additional unit of…
Q: Assume that for a quantity produced of 20, the total cost is 500 and the average fixed cost is 10.…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: the short run, a firm's average variable cost will increase as its output increases because
A: The variable cost refers to the cost which changes with change in the level of output. AVC = TVC/Q.
Q: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He…
A: Total cost =total variable cost + total fixed cost
Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…
A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…
Q: an output of 0?…
A: Average cost is calculated as the average of total cost, required to produce each unit of output.…
Q: A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of…
A: By doubling the inputs that are employed in producing the good, will not increase the variable cost…
Q: If Q = 2LK2 , what happens to average cost as the firm expands (produces more)? a.AC reaches its…
A: Cobb-Douglas production function of Q=ALa Kb with a+b>1 shows increasing returns to scale.
Q: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…
A: * SOLUTION :- Given that ,
Q: Joel hires students to sell magazine subscriptions at $450 per student per week. He leases equipment…
A: Total cost is the sum of Fixed cost and variable cost. Fixed cost remains same at all levels of…
Q: What effect might a decrease in the demand for high definition television have on the short-run…
A:
Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…
A: "Cost curves in economics represents a graph of the costs involved in the production process as a…
Q: Graphs must display The Marginal Cost Curve is shaped like a Nike swoosh. The Marginal Cost Curve…
A: 1. The marginal cost is the cost that is caused to the firm through the increased production of the…
Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…
A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…
Q: During the previous month, a firm produced 250 tablet devices at an average variable cost of $40 and…
A: Given:Average variable cost=$40 Average fixed cost=$10Total output=250 tablets
Q: The table shows daily output for small pizzeria based on the number of workers hired. Suppose fixed…
A: Average Total Cost (ATC) is the total cost per unit of output. ATC = TC/Q where, TC is the Total…
Q: For an increase in output, average costs change by more in the short run than in the long run, but…
A: Average Price The total cost is divided by the number of things produced to get the average cost.…
Q: Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50.…
A: Total cost of production is the sum of total fixed cost and total variable cost. Total fixed cost is…
Q: or a decrease in output, average costs change by more in the long run than in the short run - True…
A: If there is a decrease in the production, short-run average total cost and long-run average total…
Q: In the short run, which of the following costs will not change as output changes? marginal cost.…
A: The short run is a period of time in which at least one factor of production (input) is fixed, while…
Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…
A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…
Q: The following Table Q1(b) shows the total product schedule for a widget. Each unit of labor costs is…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: Which of the following is correct if the firm described in Figure 7-4 decides to produce nothing?…
A: There are certain fixed costs that the firm has to incur even at 0 production level. Those costs are…
Q: Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If…
A: Total cost = TFC + TVC AVC = TVC/Q AC =TC/Q MCn=TCn -TCn-1= change in TC/change in Q AFC = TFC/Q
Q: Give few examples of "Sunk Cost" from your real-life experience.
A: Money that was already spent that cannot be recovered is referred to as a sunk cost. The axiom that…
Q: Classify the following milk bar short-run costs as fixed cost or variable cost Milk truck Fruit…
A: The short-run is the time period when there is at least one factor which is fixed and cannot be…
Q: please pick an example of three types of costs that a business can incur and briefly explain whether…
A: Fixed Costs are those costs that remain constant at all levels of output. Variable Costs are those…
Q: The average fixed cost curve a. always rises with increased levels of output b. declines as long as…
A: The average fixed cost is the per unit fixed cost incurred in the production process as it is…
Q: Water World Water Park has the following cost function: TC = 500 + 125q and MC = 125 a) Determine…
A: Given: TC = 500 + 125q MC = 125
Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…
A: Here, total output given is 1,000 units. Average total cost is $100. Average total cost is defined…
Q: The following statement describes which source of low costs? “The more the firm has ever made, the…
A: Given : The more the firm has ever made, the better it gets at making.
Q: The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable…
A: Average fixed cost (AFC)=Total fixed costQ AFC=10000010000=10
Q: When a firm produces one unit, the variable cost is $8. When the firm produces two units, the…
A: Marginal cost is the addition to the total cost. Total cost consists of total fixed cost and…
Q: True or False: For an increase in output, average costs change by more in the short-run than in the…
A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…
Urban Decay Cosmetics produces q units of setting sprays and their short-run total cost is given by STC = 2q2-15q+162. Which value of q will minimize Urban Decay’s average cost?
Step by step
Solved in 2 steps with 1 images
- The daily cost to manufacture generic trinkets for gullible tourists is given by the cost function C(x) = -0.001x2 + 0.7x + 590 dollars, where x is the number of trinkets. (a) Find C'(x). C'(x) = As x increases, the marginal cost does which of the following? increases decreases increases then decreases decreases then increases (b) Find C(x). C(x) = As x increases, the average cost does which of the following? increases decreases increases then decreases decreases then increases (c) Find the following values. C'(100) = C(100) The marginal cost is less than the average cost when x = 100. Submit Answer O O11.2 The cost, in thousands of dollars, of airing x television commercials during a sports event is given by C(x) = 20 + 3,000x + 0.01x2. (a) Find the marginal cost function C'(x). HINT [See Example 1.] C'(x) = Use it to estimate how fast the cost is increasing when x = 4. thousand dollars per television commercialCompare this with the exact cost of airing the fifth commercial. The cost is going up at the rate of $ per television commercial. The exact cost of airing the fifth commercial is $ . Thus, there is a difference of $ . (b) Find the average cost function C, and evaluate C(4). HINT [See Example 2.] C(x) = C(4) = thousand dollars per television commercial What does the answer tell you? The average cost of airing the first four commercials is $ per commercial.The market for high-quality caviar is dependent on the weather. If the weather is good, there are many fancy parties and caviar sells for 300 SEK per kg. In bad weather it sells for only 200 SEK per kg. Caviar produced one week will not keep until the next week, i.e. it has to be sold and consumed the same week it is produced. A small caviar producer has a cost function given by C=5q2 - 50q + 1000 where q is the weekly caviar production. Production decisions must be made before the weather (and hence the price of caviar) is known, but it is known that good weather and bad weather each occur with a probability of 0.5. a) How much caviar should the firm produce per week if it wishes to maximise its expected profit? b) Suppose the owner of the firm has a utility function of the form U(π)=√π where π is weekly profits. What is the expected utility associated with the strategy in (a)? c) Suggest a weekly production level that would give the owner higher expected utility than the…
- The market for high-quality matsutake mushrooms is dependent on the weather. If the weather is good, one kilogram matsutake mushroom can be sold for $30. In bad weather it sells for only $20 per kilogram. Matsutake mushrooms produced one week will not be kept until the next week, A small matsutake mushrooms producer has a cost function given by C = 0.5q^2 + 5q + 100 where q is weekly matsutake mushrooms production. Production decisions must be made before the weather (and the price of matsutake mushrooms) is known, but it is known that good weather and bad weather each occur with a probability of O.5. How much matsutake mushrooms should this firm produce if it wishes to maximize the expected value of its profits?Find the marginal cost for TC = 10x3+4x2+1A toll road commission is planning to locate garages for tow trucks along a 94-mile circular highway. Each garage has a fixed cost of $4,500 per day. Towing jobs are equally likely along any point of the highway, and cost per mile towed is $47. If there were 4,500 towing jobs per day, what number of garages would minimize the sum of the fixed costs and towing costs? Instructions: Enter your answer as a whole number. garages
- What is the difference between a price analysis and a cost analysisThe cost, in thousands of dollars, of airing x television commercials during a sports event is given by C(x) = 150 + 2,600x – 0.06x2. (a) Find the marginal cost function C'(x). C'(x) = (b) Use the marginal cost to approximate the cost to air the 5th commercial. Convert your answer to dollars. The cost to air the 5th commercial is approximately X dollars. (c) What is the exact cost to air the 5th commercial? Convert your answer to dollars. The exact cost to air the 5th commercial is x dollars.Given the cost function , TC = 4q2 + 9 - calculte marginal cost ?
- Suppose the total cost of producing T-shirt can be TC = 50+2q. The average cost ofSuppose that the dollar cost of producing x appliances is c(x) = 1000 + 70x-0.1x². a. Find the average cost per appliance of producing the first 100 appliances. b. Find the marginal cost when 100 appliances are produced. c. Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly. CUCKO The average cost per appliance of producing the first 100 appliances is $ (Round to the nearest cent as needed.) /appliance.Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 25,000 10 35,000 20 40,000 30 43,000 40 45,000 50 46,000 60 47,000 70 47,700 80 48,000 90 48,200 100 48,100 Given the information presented in the previous table, the fixed cost to operate this flight is $ At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 700 550 40 200 60 100 100 Complete the following table by computing total revenue, total cost, variable cost, and profit for each of the prices listed. (Hint: Be sure to…
