A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month per customer. The company charges $37.5 per month to its cell phone customers. a. What is the breakeven point for this company?

A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month per customer. The company charges $37.5 per month to its cell phone customers. a. What is the breakeven point for this company?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: The deadweight loss that arises from a monopoly is a consequence of the fact that the monopoly A.…

A: In a monopoly market structure, there is only a single seller and the product which is being sold is…

Q: ATC MC, $59 $50 $45 $38 $35 $26 $12 MR 38 74 82 90 %24

A: The change in marginal cost is the ratio of change in total cost to the change in quantity. The rise…

Q: 2. Consider the following simultaneous move stage game. In each cell, player l's payoff is shown…

A: The strategic interplay of economic agents is modeled using game theory. One prominent application…

Q: Suppose that at a wage rate of $10, a firm which is using its resources efficiently has a marginal…

Q: The impact on economic growth because of cyclical unemployment will be through A. Reduced labour…

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…

Q: D3) The dominance of the US economy and incredible market returns from 1946-present can, in…

A: The United States, the United Kingdom, and China released the Potsdam Declaration on July 26, 1945,…

Q: What is the income effect when studying the supply of labor? A. a decrease in number of hours…

A: There are two effects i.e. substitution effect and income effect.

Q: Marginal Product becomes equal to Average Product is_ a. Additional Cost is equal to the additional…

A: The change in total output when there is one more unit of input is added to manufacturing is known…

Q: In a country with a population of 70 million people, there are 30 million children under the age of…

A: Introduction : Unemployment rate- unemployed people/labour force x 100

Q: Assume costs of production fell, resulting in an extra 20,000 units supplied at each of the above…

A: Price Rands Quantity Demanded (000 units) Quantity Supplied (000 units) 20.0 40 25…

Q: Suppose 2 players play the following game infinite times in the future. What should be the minimum…

A: In game theory, the Nash equilibrium is the equilibrium outcome from which none of the players have…

Q: An overly expansionary monetary policy leads, in general, to: a. High inflation O b. High…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: In your own words, explain the horizontal and vertical interpretation of the demand curve. 2.…

A: Demand - it refers to the quantity of a good that a consumer is able and willing to purchase during…

Q: (1) Lobbyists are supposed to provide two things to the legislative process. A. Greed and corruption…

A: The answer is - C. Information and access

Q: According to the Resource-Based View, which of the following is most likely to result in sustainable…

A: The answer is - Access to tangible resources that are currently producing significant value.

Q: Putting Virtual Reality on the Market: Is It Possible?

A: virtual reality markets include brands advancing themselves and their items by utilizing virtual and…

Q: Please give me the correct answer and how to solve the problem The current 10-year USTS are trading…

A: With cash on one side and Treasury securities on the other, the repo market is essentially a two-way…

Q: Complete the sentences analyzing the schedule below: Demand and Supply Schedule of Hamburger per…

A: 1. Shortage exists when at a particular price level, quantity demanded is greater than the quantity…

Q: 5. Imagine inflation is 10%, and the central bank wants to have inflation equal te 2%. When…

A: Mutated Phillips's Curve equation - π = πe - α(U - U*) Where , a = slope of PC U* = Natural rate…

Q: Again, please use the following data for an economy that has only two banks, Bank A and Bank B.…

A: Given; For Bank A:- Reserves on hand= $65000Deposit in the Fed= $40000US government bonds=…

Q: 12.) Consumer surplus is equal to minus a.) Price, willingness to pay b.) Price, cost to produce c.)…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: Given the example of Toyota as a car manufacturer, explain to the management team how the company…

A: Economics is concerned with the well-being of everyone, including those with and without jobs, as…

Q: GDP can be calculated by all of the following methods except… a) Adding up the spending on goods…

A: "GDP represents the market value of final goods and services produced in an economy at a specific…

Q: Economics According to the climate graph, what is the range of temperature recorded in the city of…

Q: Calculate M1, M2 and M3 using the following information: Items Billion $ Negotiable certificates 304…

A: The total inventory of money circulating in an financial system is the money supply. This entails…

Q: 1.) both have ten hours of time available. The can use their time to do one of two things: make…

A: * Solution :- (1) From the given information the answer is provided as below as

Q: Is the mpc in the multiplier .75? only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: The total cost function of a firm in a perfectly competitive market is given by: TC =3Q2+ 2Q + 10.…

A: Here, the total cost function of a firm, which operates in the perfectly competitive market, is…

Q: At a baseball game, why do baseball players make so much money while the hot dog vendor makes so…

A: Baseball game is a game playing between two opposite teams . Its very famous game and thats why…

Q: Economics Using the poosibiliting Frontier ExpRain the concept of opportunity ost moving From D.tNA…

A: Here, the given production possibility curve shows the trade-off between quantity of butter and…

Q: Rand's remarkable resilience inflicts pain on its doubters  The rand seems to no longer follow the…

A: Exchange rate: The exchange rate of an economy is the rate at which the local currency's value is…

Q: Logically relate the concepts – Choice, Scarcity, and Opportunity Cost while explaining each…

A: choice alludes to the capacity of a purchaser or maker to choose which great, administration, or…

Q: Read the following extract and answer questions 1. and 2. Pay rises offered despite Bank of England…

A: Wage stability is an essential condition for price stability. Wage stability does not always mean…

Q: b) Given the following exchange rate quotes Eues E1/$1.1837 nd Eure El/0.7230 Poond E1/$1.6388…

A: Exchange rate quotes Exchange rate quotes mean when the currency of foreign is expressed in terms…

Q: Cartels usually breakdown because of what? Cartels can only be effectively run if they use Game…

A: It very well may be referenced that cartels can not exclusively be run actually by game hypothesis…

Q: 1.6 In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of…

A: Simple Keynesian macroeconomic model refers to the nature of economic growth when there is a change…

Q: B. The real interest rate is 4 percent and the nominal interest rate is 7 percent.

A: The lenders wants to increase their real income or wants to increase their purchasing power. So they…

Q: Economics Suppose cauliflower and broccoli are substitutes in consumption. Suppose further that the…

A: The answer is - B. Decrease, increase

Q: Malaysia is an upper middle income country that has grown through foreign direct investment in…

A: Foreign direct investment refers to these situation when a country collects funds for investment…

Q: (1) Total revenue (TR) (i) Total cost (TC) (ii) Profit (iv) Type of profit is earned by this firm?…

A: Total cost is the total amount incurred by a firm on the factors of production. Total revenue is the…

Q: FIRSTRAND BANK, WESBANK AND TFS REFERRED TO COMPETITION TRIBUNAL FOR COLLUSION JOHANNESBURG - The…

A: The commission that tends to negotiate agreements with authority for coordinating and harmonizing…

Q: 7 find the expected payoffs for each branch and then put in normal form like this. example down…

Q: Which of the following groups is protected from a sudden increase in inflation? a) Borrowers who…

A: Inflation is the gradual loss of buying power of a currency.An economy's average price level of a…

Q: Consider a Variant oF the utimatum qame we Studicd in class IN which playcrs have Fairness…

A: Introduction Ultimatum game described human unwillingness about injustice. Fairness can be studied…

Q: Which best describe equation 2?

A: Inflation means the rise in the price level of goods and services in the economy. It means as the…

Q: Assume that a country is considering whether it wishes to invest in a new opportunity. While the…

A: The present value is the current value of the future output.

Q: If the simple Keynesian macroeconomic model is used to explain expansionary fiscal policy, which of…

A: The theory of Keynesian economics states that the government should raise demand to increase growth.…

Q: Let the demand and supply functions for a given commodity be Q = a - ßp Q=-y+ p where (a, B, 8, y>…

A: Here the supply curve is the curve depicting how much production of manufacturing goods is being…

Q: Given the demand and supply functions, determine the price elasticity of demand and price elasticity…

A: The formula for elasticity is given by: e = dQdP x PQ So our demand function is : Qd = 10 - (1/2)P…

Q: what kind of relationship is between GDP and unemployment

A: GDP from expenditure approach includes consumption expenditure, investment expenditure, net exports…

Question

A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month
per customer. The company charges $37 5 per month to its cell phone customers.
a. What is the breakeven point for this company?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Information given

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
What is the equipment"s the initial cost?
pls solve this ques in 15-20 minutes in clear handwriting I'll give you multiple upvotes, answer not be plagiarised, should be in your own words.
. A call center in India used by U.S. andU.K. credit card holders has a capacity of1,400,000 calls annually. The fixed cost ofthe center is $775,000 with an averagevariable cost of $2 and revenue of $3.50 percall.(a) Find the percentage of the capacitythat must be placed each year tobreak even.
The change in fotal costjof proaucCuọn as the output or total product of the business is expanded is: LATHE Marginal cost (b) The Total variable cost (c) Average variable cost (d) Average fixed cost
T/F The fixed cost remains same at all level of output.
An electronics firm is currently manufacturing an item that has a variable cost Of .50 per unit. Please write the answers clearly I am 60 years old and hard for me to understand thank you. Please write out the steps
Plz solve it within 40-50 mins I'll give you multiple upvote
sarah earns 400 per week and spends 15% of her earning on tranpotation every week
What Is Developing a Performance Measurement and EvaluationSystem?
What is Cost Analysis?
What is the fixed cost? what is the AVC quantity of 10 quantity. Total cost 0. 1000 10. 2000 20. 4000