Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 6P
To determine
Per unit cost of an application.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The per-unit cist of an item is its average total cost=(=total cost/quantity). Suppose that a new cell phone application costs $100,000 to develop and only $0.70 per unit to deliver to each cell phone customer.
What will be the per-unit coat of the application if it sells 100 units?
What will be the per-unit coat of the application if it sells 1,000 units?
What will be the per-unit cost of the application if it sells 1 million units?
QUESTION 1: Calculate a plant's total cost for every day in the data, in dollars. Total cost is defined as: total_cost = total_raw_materials_cost + total_operating_cost + total_labor_cost.
Which plant is the most expensive to operate, and what is the cost to operate the plant?
QUESTION 2: Which cost source (or combination of sources) makes up the majority of a plants total expenditures?
raw material, labor, operating, or no cost is consistently the majority of total cost across plants
QUESTION 3: Calculate cost efficiency, defined as how much money is spent to produce 1 pound of release ease (i.e. total production/cost).
Which plant is the least cost efficient, in lbs of release ease produced per dollar spent?
What is the daily average efficiency for the plant that is most efficient?
link to excel data:https://docs.google.com/spreadsheets/d/1PM9rh2DnEdKQqCjJM1cmVjcP7_YSdA0y/edit?usp=sharing&ouid=109691244462343090665&rtpof=true&sd=true
A 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
Knowledge Booster
Similar questions
- Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.arrow_forwardAs a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the production plan is to produce 250 products, what is the firm's minimized cost? A: $7500 B: $5000 C: $12500 D: $10000arrow_forwardSuppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project: How would you allocate your time across the projects?What is the maximum total money you could make?arrow_forward
- You produce widgets. Currently you produce four widgets at a total cost of $40. What is your average total cost? Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why? Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?arrow_forwardAssume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8, the average cost of producing 8 units is 6, the average cost of producing 10 units is 9, and the average cost of producing 12 units is 11. If you're producing 6 units, what should you do to minimize average costs? a) produce exactly the same, I'm already minimizing costs! b) produce more c) produce less Please, help me understand how to solve future problems of the same kind through step by step solution.arrow_forwardExplicit cost = $100 Implicit cost = $163 Total cost = ?arrow_forward
- Assume that it costs a company approximately C(x) = 484,000 + 160x + 0.001x² dollars to manufacture x units of a device in an hour at one of their manufacturing centers. How many devices should be manufactured each hour to minimize average cost? units What is the resulting average cost of a device? $ How does the average cost compare with the marginal cost at the optimal production level? Find how much they differ. $arrow_forwardThe table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in dollars) for the Acme Company. Use these data to answer the questions below. Quantity of Gold Bars (thousands) Extraction Cost ($ per bar) 0 30,000 1 35,000 2 40,000 3 45,000 4 50,000 5 55,000 Instructions: Enter your answers as a whole number. a. If the user cost is $10,000 and the current price of a gold bar is $55,000, how many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars b. Now suppose that the user cost decreases by $5,000 such that the new user cost is $5,000, but the price remains the same. How many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardHow many units of output should each plant produce? Please specify your answer as an integer.arrow_forward
- Production function of a company is given by f(x;y)= root of x + root of y where x is labor and y is capital. Cost of labor is 2 currency units, while the cost of capital is 1 currency unit. What are the minimal cost to produce 10 units of the product? What is the change in the costs, if the production volume would increase by 50 %?arrow_forwardAdam operates a factory that produces beach towels. His current level of output equals 1000 towels per week. His weekly variable cost equals $4000. If the total cost each week equals $4500, what is the average total cost of production per towel? $2 $4 $4.50 $8arrow_forwardAnswer + 12. Advertising Costs The cost, in billions of dollars, of airing æ five-second hologram commercials during a Galactic Chess game can be approximated by C(x) = = 490 + 320x + 0.001x². How many hologram commercials should your company air to minimize average costs? What is the resulting average cost of a five-second ad? (Round your answer to the nearest billion dollars.) [Hint: See Example 1.]arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning