You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day you have a fixed cost of $9 to operate. The marginal cost of your first widget is $1; second is $2; third $3; fourth $7; and for the fifth it is $8. You have a capacity constraint of 5, and you can only produce a whole number of widgets. Part 2 The AVC for a firm that produces 2 widgets is $ enter your response here. (Round your answer to 2 decimal places as needed)
Q: Here are the following questions. 8. The demand function for New Zealand kiwi fruit is Q- 50 -15P…
A: Economists define demand as people's willingness to buy a good of their choice as well as their…
Q: The satisfaction that comes from making a choice or consuming a good or service is called focus…
A: The subject of economics focuses on how societies distribute scarce resources to meet seemingly…
Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…
A: Since you have posted multiple questions, we will provide the solution only to the first five…
Q: Consider a sequential game where there are two players, Jake and Sydney. Jake really likes Sydney…
A: The issue consists of a game between two players, Jake and Sydney, who are choose which of two…
Q: Given the following utility functions for Consumer A and Consumer B and their budget contraints: UA…
A: There are two individuals : A & B Utility function of A : Ua = X0.5Y0.5Utility function of B…
Q: 10.14 Total economic output in three years. The n - vector xt denotes the economic output of a…
A: Total Output = (1, 1, ..., 1) * A * A * A * xtExplanation:The total economic output in year t + 3…
Q: Refer to the table below: Year 1950 1960 1970 1980 1990 2000 2010 2020 Participation Rates (Age 16…
A: Labor force participation refers to the portion of the working-age population that actively takes…
Q: Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands…
A: To determine how many units of each subassembly Roedel should manufacture and how many units of each…
Q: Which does not come under Schroeder's decision-making category of process? (Select one) 1) Layout of…
A: The objective of the question is to identify which of the given options does not fall under…
Q: In the period of 1950-1973 the GDP average growth rate reached 9.3 % in Japan and approximately 4 %…
A: The new growth theory states that humans in any country have a desire to increase and be productive…
Q: growth rate
A: The Solow growth model explains the long run growth rate of economy. The short run growth can be…
Q: $ Dollars MR 0 b O Q Multiple Choice O Quantity Refer to the diagram for a non-collusive…
A: The firms that have a small quantity if suppliers in the market are referred to as oligopoly…
Q: Suppose there is a sudden decrease in government purchases that causes a shift in aggregate demand…
A: Aggregate demand:Aggregate Demand is when the total number of consumers have the desire to buy…
Q: Use the following information to answer the next six questions. The accompanying graph depicts the…
A: Price Discrimination:Price discrimination is a pricing strategy where a seller changes different…
Q: A firm uses two inputs, X1 and X2, to produce a good that is described by the production function: Q…
A: The production function is given as The price of the goods are $80 each. The cost for input for the…
Q: Table 5-3 Product Cokes Hamburgers CDs Base Year (2013) Price $0.50 2.00 20.00 Quantity 100 200 10…
A: [Note: Since you have posted multiple questions, we will provide the solution only to the first…
Q: Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the…
A: This theory explains how consumers choose various options to maximize their utility(U) given their…
Q: INTEREST RATE (Percent) m > 0 80 120 160 LOANABLE FUNDS (Dollars) y D₂ d Refer to Figure 26-4.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: (a) u(x, y) = 2x+y is a monotonic transformation of u(x, y) = x + 2y. True or false, why? (b) u(x,…
A: Monotonic Transformation is a way of transforming a set of numbers into another set that is similar…
Q: Mary Graham has worked as a real estate agent for Piedmont Properties for 15 years. Her annual…
A: The accounting profit of a firm refers to the excess revenue generated from operations or sales over…
Q: Price Level 0 AD₁ AD3 Real Domestic Output, GDP Multiple Choice AD2 Refer to the accompanying graph.…
A: The following graph addresses the Aggregate Demand (Promotion) curves in an economy. These curves…
Q: Amy is looking into investing a portion of her recent bonus into the stock market. While researching…
A: The objective of the question is to determine which company would provide a more stable long-term…
Q: The Johnson family is very conservative financially. They have a retirement plan where John works…
A: The objective of the question is to identify the best financial strategy for the Johnson family, who…
Q: Price 180 150- 120- 90- 60- 30 0- 0 5 10 Quantity OP=-0.083 QD + 180 OP=-12 QD + 180 OQD = -0.083 P…
A: The inverse demand function represents the price as the function of the quantity demanded. It means…
Q: Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against…
A: The fixed supply of gold i.e. .The fixed supply of silver i.e. The inverse demand function for gold…
Q: The Current Population Survey reports the data for last month: 73 million people had full-time jobs.…
A: The objective of the question is to calculate the labor force and the working-age population based…
Q: Managerial economics involves the application of economic theory and decision science. a. True b.…
A: Managerial economics is the economics sub-field that uses economic theory and quantitative…
Q: Health and O Housing Education services are central to budgeting across the public sector. None of…
A: The process by which a government plans, distributes, and monitors its financial resources is known…
Q: A good's demand is given by: P = 860 - 4Q. At P = 55, the point price elasticity is: Enter as a…
A: Demand(DD) is the quantity(Q) of a service or good that buyers are prepared and willing to purchase…
Q: The wages paid to workers employed by a firm are an example of an explicit cost. a. True b.…
A: Wages represent the cash payment or payment that workers receive for the labor that they provide to…
Q: The nearby graph shows Beau's indifference curves and budget line for pizza and tacos. Beau will not…
A: The budget line is the graphical representation of the different combinations of two goods purchased…
Q: On Tuesday, March 13, 2018, the world's 5th largest diamond gem found to date, the 910-carat…
A: The African diamond market holds importance in the worldwide gemstone sector, boasting notable…
Q: Claire's Cafe increased its total monthly revenue from $4,500 to $6,200 when it reduced the price of…
A: Demand(DD) refers to the quantity(Q) of a service or item that consumers are ready and able to buy…
Q: Use the following information to answer the next six questions The accompanying graph depicts the…
A: Price Discrimination:Price discrimination is a pricing strategy where a seller charges different…
Q: $19 16 13 10 0 100 Multiple Choice O MC O O O 160 180 210 Quantity MR Refer to the diagram for a…
A: Monopolistically competitive firms operate independently selling similar products with unique…
Q: What is the impact of income inequality on economic growth? A. Income inequality has no effect on…
A: Income(Y) inequality refers to the unequal distribution of income(Y) among individuals or households…
Q: Jerry spends his entire budget on bread and gasoline. His preferences are complete, transitive,…
A: Substitution Effect: This refers to the change in quantity demanded of a good or service as a result…
Q: If the United States is currently importing 14 million barrels per day at a world price of $4.00 per…
A: Taxes are collected on imports by customs authorities. The taxes are levied on freight and the…
Q: Explain why international trade is important to the economy.
A: International trade is the purchase and sale of products and services by companies in different…
Q: Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves…
A: Market equilibrium(E) is the point where the quantity(Q) of services or items supplied equals the…
Q: We again assume a simple closed economy with GDP of 100 and: c0 (autonomous consumption) = 20 c1…
A: we are given with a simple closed economy where,GDP= 100c0 or (autonomous consumption) = 20c1 or…
Q: Assume Marco is initially borrowing and investing 100, with a return on investment of 50% and an…
A: Investment and borrowing are the key ways through which individuals and businesses try to reach…
Q: Don't use AI answer Which of the following are leakages from the circular flow of income? a.…
A: The issue needs to be distinguished as to what set of items are seen as spillage in the salary…
Q: [MUST SHOW WORK] In the Danesland, aggregate income is $1,000. Consumer, business, and government…
A: The GDP equilibrium occurs where the aggregate demand and aggregate supply forces are equal. The…
Q: Consider a simple economy that produces two goods: coffees and enamel pins. The following table…
A: Gross domestic product measures the market value of final goods and services produced by a nation…
Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…
A: The objective of the question is to understand the concept of economic efficiency, where the…
Q: sssy In a sample of 134 ball bearings, the average diameter was found to be 3.78mm with a standard…
A: The objective of the question is to find the point estimate for the population variance of the…
Q: PRICE LEVEL 300 270 240 210 180 150 120 90 60 30 0 AD 0 100 200 LRAS C 500 600 700 300 400 REAL GDP…
A: Aggregate demand refers to the total demand for goods and services produced in an economy in a given…
Q: An automobile repair shop charges the competitive market price of $16 per bike repaired. The firm's…
A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…
Q: A firm produces output according to the following production function: Q = F (K, L) = min{4K, 4L}…
A: The production function is a mathematical function looking to maximize the output level. The…
Step by step
Solved in 1 steps
- Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?Suppose a local retailer is running the following sale on jugs of detergent: $20 each or 3 for $56. The total cost of purchasing two jugs is. The marginal cost of the third jug is _____. $60; $56 0 $56; $16 $56; $60 $40; $16 O $16; $40 O3. Two poultry farms supply companies with chicken feeds. The unit costs of shipping from the farms to the companies are given on the table below. The farm's goal is to minimize the cost of meeting customer's demands. (a) Generate a mathematical model for finding the least cost way of shipping chicken feeds from the farms to the companies. (b) if the demand of company number 2 increased by 3 units. By how much would the costs increase? Show your solution. Ic). Solve the total cost using the solver add-in in excel From Company 1 Company 2 Company 3 Supply Farm A 55 65 80 35 Farm B 10 15 25 50 Demand 10 10 10
- 1. A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright? 2. Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?A price-taking firm makes air conditioners. The market price of one of its new air conditioners is $130. The firm's total cost information is given in the table below: Instructions: Calculate marginal cost, and enter your responses as whole numbers. Air conditioners per day Total cost Marginal cost ($ per day) ($ per day) 1 100 100 2 150 3 220 4 310 5 405 6 510 7 650 8 800 How many air conditioners should the firm produce per day if its goal is to maximize its profit? air conditioners per day.
- See Hint Suppose you are the owner of a firm producing jelly beans. Your production costs are shown in the table. Jelly Bean Production Вохes Average cost per box 100 $0.95 101 $0.96 102 $0.97 $0.98 103 Initially, you produce 100 boxes of jelly beans per time period. Thena new customer calls and places an additional order for jelly beans, requiring you to increase your output to 101 boxes. She offers you $1.75 for the additional box. Should you produce it? Choose one: O. A Yes, because $1.75 is greater than average total cost, O B. No, because $1.75 is less than average total cost. O C. Yes, because $1.75 is greater than the marginal cost. O D. No, because $1.75 is less than the marginal cost. 9 E. We can't say because we don't know average variable cost.1. You are running a (small) chain of gourmet burger joints with two locations (San Antonio and Laredo) You have been charging $10 for your burger meal (fries, burger and soft drink). Across both locations, you sell 2400 meals per week at this price. When you raised the price to $13 for the burger meal, your sales across the two locations fell to 1800 meals per week. For your costs, you have fixed costs of $3000 per week across the two locations. In addition, it costs you six dollars per burger in variable costs (ingredients, labor etc.) A. What is your combined cost function across the two locations? B. Using the two prices above, estimate your combined demand function across the two locations? C. Using the combined demand function and cost function calculated above, calculate the profit-maximizing price and quantities? D. What are your (combined) weekly profits across the two locations?Pretty Designs, Inc. makes flower pots. Suppose that their average total cost of production is $60 when 5 flower pots are produced. Suppose the marginal cost of the sixth flower pot is $120. What is Pretty Designs' average total cost when six flower pots are produced?
- Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table. Number of Photocopies Per Month Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $100 1,000 $110 2,000 $125 3,000 $145 4,000 $175 5,000 $215 6,000 $285 a. Fill in the missing numbers in the table, assuming that Margie can charge 6 cents per black-and-white copy. Margie's fixed cost is: $ Variable cost, 0 photocopies/month: $ Variable cost, 1,000 photocopies/month: $ Variable cost, 2,000 photocopies/month: $ Variable cost, 3,000 photocopies/month: $ Variable cost, 4,000 photocopies/month: $…A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright?a donut shop charges customers the same price. the profit maximising output is 100 at a price of 5$ per donut. marginal cost is 2$. The donut shop owner now discovers that it has two very different types of customer children and adults . It can maximise its profits by selling 30 donuts to children for a price of 4$ per donut and 70 donuts per evening to everyone else for a price of 6$ per donut. Draw a diagram showing the profit-maximising price and output a) when all customers are charged the same price and b) when children are charged a different price c)How much profit does the donut shop owner make when children are charged a different price? explain how to draw the diagrams also in detail please!
