Complete the following table for a perfectly competitive firm and assume the firm can only produce in 5-unit increments (i.e., 5, 10, 15, 20, or 25 units). Instructions: Round your responses to two decimal places. Output Total Cost 0 5 10 15 20 25 $50 70 80 110 150 200 Marginal Cost Average Average Total Cost Variable Cost Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. units a. If the price is $7, how much output will the firm supply? (Hint: Use the profit-maximizing rule and enter the quantity in the discrete 5- unit increment as shown in the table.) b. How much profit or loss will it make? $ c. The firm will shut down if the price falls below which price? (Click to select) ✓

Complete the following table for a perfectly competitive firm and assume the firm can only produce in 5-unit increments (i.e., 5, 10, 15, 20, or 25 units). Instructions: Round your responses to two decimal places. Output Total Cost 0 5 10 15 20 25 $50 70 80 110 150 200 Marginal Cost Average Average Total Cost Variable Cost Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. units a. If the price is $7, how much output will the firm supply? (Hint: Use the profit-maximizing rule and enter the quantity in the discrete 5- unit increment as shown in the table.) b. How much profit or loss will it make? $ c. The firm will shut down if the price falls below which price? (Click to select) ✓

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

See similar textbooks

Similar questions

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?
Finley's orchard incurs $90,000 per year in fixed costs. Last year, their total production was 100,000 tons of cherries. This year their total production fell to 72,000 tons. As a result, their average fixed cost by Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a decreased; $0.31 increased; $0.35 decreased; $0.35 d increased; $0.31
Could you show the profit and loss on the graph. Furthermore, the figures for cost you posted were incorrect as they are not dropdown options.
The Trouser Company has fixed costs of 2,000 per week. In addition, we have some information about its marginal costs (MC) and total variable costs (TVC) Output 0 30 60 90 100 120 150 MC 140 59 32 59 80 140 275 TVC 0 2850 4080 5310 6000 8160 14,250 For each of the output levels in the table, calculate the Trouser Company’ average variable costs (AVC) and average (total) cost (AC)
The accompanying table shows a car manufacturer’s total cost of producing cars. Quantity of cars TC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 What is this manufacturer’s fixed cost? For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.
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.
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?
The table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If the company's fixed costs are $30, what is the average total cost in B? Variable Fixed Total Average Cost $30 $30 $30 $30 $30 $30 $30 Quantity Cost Average Total Marginal Cost Cost Variable Cost Cost $10 $25 $45 $70 $100 $135 1 2 A 345O
When Yennefer produces 15 spells her total cost is $4,298 and her average variable cost is $18. What are her fixed costs?
Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows:Output TFC TVC TC AFC AVC ATC MC 0. 10001. 1002. 1003. 4004. 4505. 16006. 32007 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 profit
Megan’s Snow Shoveling Service, in which Megan is the only employee, has the following cost schedule. Quantity(sidewalks shoveled per day) Variable Cost Total Cost AVC ATC MC 0 $0 $30 - - - 1 10 40 10 40 10 2 25 55 12.5 27.5 15 3 45 75 15 25 20 4 70 100 17.5 25 25 5 100 130 20 26 30 6 135 165 22.5 27.5 35 a) What are Megan’s fixed costs? Given the nature of sidewalk shoveling production, why does Megan’s marginal cost curve look like it does in your graph? b)Suppose the market price for shoveling a sidewalk is $20 per sidewalk. How many sidewalks will Megan shovel each day to maximize profit? c)Suppose the market price of shoveling a sidewalk rises to $25 because it has been a snowy winter. How many sidewalks will Megan shovel each day to maximize profit?
Allstate Heating Company has $12,000 fixed costs each week. Its total variable costs change as the number of water heaters produced each week changes, as follows: Water Heaters Total Variable Cost 1 $600 2 1,800 3 3,600 4 6,000 5 9,000 6 12,600 7 16,800 8 21,600 9 27,000 10 33,000 Add columns to the table and calculate the total cost, marginal cost, average fixed cost, average variable cost and average total cost for all levels of output. Using Microsoft Excel, create one correctly labeled graph showing the marginal cost, average fixed cost, average variable cost and average total cost curves. Explain with economics why the average total cost curve has a U shape, when neither of its components, average fixed cost nor average variable cost, does. Allstate paid $5,000 for researching the area before setting up its business location. How does this cost figure into its costs of production?