A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The marginal cost of producing the 6th unit is
Q: If there are implicit costs of production
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A: Marginal cost is the additional cost a firm incurs when he increases the production by 1 more unit.…
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A: Marginal cost is the change in total cost divided by change in output.
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A: Marginal cost is the cost of producing an additional unit of output .
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A: here we find the average total cost and choose the correct option which are as follow-
Q: The marginal cost of producing the xth box of light bulbs is 4+ dollars per box. Determine how much…
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A: There are various types of costs that are incurred during production process.
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A: Since you have asked multiple questions, we have answered the first question for you. If you want…
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A: Given: C(q) = 0.005q + 2q + 1000. Quantity (q) = 2000 units
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A:
Q: The cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000…
A: It is given that - C(q) = 0.005q2 + 2q + 1000 and it is given that q = 2000 units.
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Q: The marginal cost of producing the xth box of light bulbs is 4 + dollars per box. Determine how much…
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A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.
Q: which of the following best describes marginal product? A.)Left over output- the loaves a bakery…
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A: marginal cost is the change in the total cost that arises when the quantity produced is incremented,…
Q: Which of the following statements correctly explains the average cost and the marginal cost of…
A: Marginal cost refers to additional cost that incurs from producing one more unit of output.
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- What is die difference between accounting and economic profit?How does fixed cost affect marginal cost? Why is this relationship important?Mon Tue Wed Thu Fri Sat Sun Notes yue cost Functi ou and price per unit function of setling x vinit of calculators are c(x) =°0.1x+ 2x+500 and X= 200-p hspectively calculeate the ) revenue Functon ) Elaborate the of cakulators are produced. marginal cost when 5 units t) maximun protit
- Refer to the diagramhe ight. The vtal diterence beween curves Fand G measures OA fxed costs O B. marginal costs OC. average fred costs O D. sunk costs. Quantily of oulpulConsider the details of 3 firms. If the price of the product is Rs.48, find the output that has to be produced to make a profit of Rs.84,000/- A B C Total Fixed Cost(TFC) 11200 16000 21600 Average Variable cost(AVC) 20 16 12A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.
- IIT Ball Bearings Inc. faces costs of production as follows: Quantity Total Fixed Cost Total Variable Cost 100 100 100 100 100 100 100 1 50 70 90 140 200 360 3 4 5 (A) Calculate the company's average fixed costs, average variable costs, average total costs, and marginal costs. (B) The price of a case of ball bearings is $50. Seeing that she can't make a profit, the Chief Executive Officer (CEO) decides to shut down Operations. What are the firm's profits/ losses? Was this a wise decision? Explain. (C) Vaguely remembering his introductory economics course, the Chief Financial Officer Tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity. What are the firm's profits/losses at that level of production? Was this the best decision? ExplainVariable Output 1 O $200 O $250 TVC O $500 400 700 2 3 4 1400 Use the above table and assume fixed costs of $1000 33. At an output of 4, AFC is: 1000 TC AFC O $1000 O Cannot be determined AVC ATC Marginal CostThe manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?
- 1. The cost-revenue data for a manufacturing company Item Cost or Revenue Selling price $85/unit Material and maintenance $25/unit Direct Labor cost $20 /unit Other costs /unit =70% of the labor cost/unit Find it out All fixed costs $130,000 1. Find the break-even quantity 2. If marginal cost beyond the break-even quantity, to 7000 units is $40/unit, what is the average cost to make 6000 units? (round the value. no decimal)Total Costs (000s of dollars) 20 000 18 000 16 000 14 000 12 000- 10 000- 8 000 6 000 4 000 2000 0 4000 0 2000 5 1000 10 15 20 Output (golf carts per month) TC TVC Refer to the figure. How much is the total cost (TC) when the total output is zero? TFC T 25 30COST PER UNIT LRATC OTX Y Z OUTPUT According to the diagram above, output OY represents the firm's: Select one: O a. market potential O b. break-even point O c. minimum physical product O d. technical optimum plant size