n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs Multiple Choice are $2.50. are $1,250. are $750. are $1,100.

n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs Multiple Choice are $2.50. are $1,250. are $750. are $1,100.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter22: Getting Divisions To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 3MC

See similar textbooks

Related questions

Q: 1. Based on the above table, does the firm operate in short run or long run?WHY? 2. Based on the…

A: The missing entries in the cost table of the firm have been computed as follows: Quantity Fixed…

Q: Measures of Cost for Charlie's Chocolate Factory Quantity (Boxes of Chocolates) Variable Costs Total…

A: Total cost is a sum of fixed cost and variable cost.

Q: A special shoe manufacturer ABC Co. has costs of production as follows : Quantity 0 1 2 3 4 5 6…

A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Refer to the data. 1- What is the Creamy Crisp's explicit costs are? 2- What is the Creamy Crisp's…

A: The firm produces various goods and services and involves various types of costs. The costs would…

Q: Sarah's copy shop can use four alternative plants. The figure shows the average total cost curves…

A: Answer - Long run average cost curve - The long-run average cost curve shows the cost of producing…

Q: If you have the following table that shows the costs of certain firm Variable costs Total cost…

A: Microeconomics deals with the firms and their behaviour individually. The costs and benefits and the…

Q: Ball Bearings, Inc. faces costs of production as follows: Table 1: Ball Bearing Inc. Production…

A: Average Fixed Cost = Fixed Cost / Quantity Average Variable Cost = Variable Cost / Quantity Marginal…

Q: Cost £ AC Quantity per week Q Figure 3 Short run average cost curve for a firm Figure 3 shows the…

A: Cost refers to the value of all the inputs that are used up in the production of a good or in the…

Q: A house cleaning business operates using a car. All data in $s. Monthly costs of car lease is 345,…

A: Total variable cost is the aggregate amount of all variable costs associated with the cost of goods…

Q: The Lawn Ranger, a landscaping company, has total costs of $5,000 and total fixed costs of $3,000.…

A: Total cost is the cost incurred by the producer for producing the goods and services and its include…

Q: QUESTION 17 Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of…

A: Total Cost = Total Fixed Cost + Total Variable Cost Fixed Cost will be same for all the units of…

Q: Total Total Average Variable Average Output Fixed Variable Total Total Marginal (Q) Cost Cost Cost…

A: Q TFC TVC TC AVC ATC MC 150 500 400 900 2.67 200 500 800 1300 6.5

Q: Quantity Total cost (in Taka) Average total cost Variable cost Average variable cost Marginal cost…

A: Quantity Total Cost Average Total Cost Variable Cost Average Variable Cost Marginal Cost 0 4.0 0 0…

Q: Total Total Average Average Dutput (Q) Fixed Variable Total Variable Total Marginal Cost Cost Cost…

A: Note: You have uploaded more than one question at a time. Hence, we shall solve only the first one…

Q: Sketch a diagram showing the marginal cost curve, the average variable cost curve, and the firm’s…

A: Marginal cost is the change in the total cost when an additional unit of output is produced. Average…

Q: ing about starting a lawn service in your area. The lawn service market can be considered perfectly…

A: Answer A) Lawns Mowed Total Variable cost Fixed cost Total Cost Average total cost Average…

Q: Figure 12-18 Revenue MC and cost (dollars per unit) $40 MR ATC AVC 24 C 20 14 12 8 a 55 100 150 200…

A: A perfect competition is a market that has a large number of buyers and sellers selling homogeneous…

Q: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows…

A: The given table can be completed by using the following equations.

Q: If you have the following table that shows the costs of certain firm Quantity (Q) Fixed cost…

A: Fixed cost is the cost which does not change with the change in the output level. Variable cost is…

Q: Cost £ AC Q Quantity per week Figure 3 Short run average cost curve for a firm Figure 3 shows the…

A: Average cost refers to the total cost per unit of output. It looks like a U-shaped curve.

Q: 2) The Trouser Company has fixed costs of 2,000 per week. In addition, we have some information…

A: The following are the cost conditions of the company :

Q: If you have the following table that shows the costs of certain firm Fixed cost Variable costs Total…

A: The formula for the following are: FC = Cost when Q=0 TC = FC +VC MC = TCn -TCn-1

Q: The Average total cost curves, the original ATCO and when an extra café is added ATC, is shown in…

A: When firms operate in a market, they incur different costs. The total cost is the sum of fixed costs…

Q: 2) The Trouser Company has fixed costs of 2,000 per week. In addition, we have some information…

A: Marginal Cost (MC): The price of production is the modification in total cost that comes from…

Q: 4. The Wipe Out Ski Company manufactures ski for beginners. Fixed costs are $30. Complete the table…

A: Formula used Total Cost = Total Variable Cost + Total Fixed Cost Average Variable Cost = Total…

Q: Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows…

A: Total cost (TC) at zero level of out is the total fixed at cost at each level of output. Thus, fixed…

Q: Indicate on the graph the areas that represent Total Revenue, Total Cost, and Profit. a. When P>ATC…

A: The different types of costs used by the firms to gauge their profitability are total cost, marginal…

Q: Assume that In the short run a firm Is producing 100 units of output, has average total costs of…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: 9 Healthy Harry's Juice Bar has the following cost schedules: yC AY Q (vats) Variable Cost Total…

A: a. Table-1 shows the variable cost and total cost schedule.

Q: FC VC TC AFC AVC ATC MC 2. 2 A 3 3 1 2 2 1.8 1 .9 1.9 3 2. 2.4 4.4 .8 1.47 .6 4 2. 2.8 4.8 .5 1.2 .4…

A: Average total cost is the per unit total cost of production. Marginal cost is the additional cost…

Q: Average total cost equals O a. change in total costs / quantity а. produced O b. (fixed costs +…

A: Total cost is defined as the sum of all the expenses being incurred by the producer on order to…

Q: The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: You are planning to setting up a Fruity Juice Stand. The stand itself costs IDR 2,000,000,- The…

A: Given:- Stand cost=IDR 2,000,000Plastic glass cost=IDR 5000 Please find images attached for detailed…

Q: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…

A: ABC Co. has a variable cost of $100. We can have the quantity produced and total variable cost in…

Q: 1. Consider Jones Company that has the following cost schedule. Table 8-1 OutputTotal Total fixed…

A: The cost of production conveys or states the amount of dollars that a corporate firm must incur on…

Q: production as follows: Quantity Total Fixed cost Total Variable Cost 0 200 0 1 200 50 2 200 70 3 200…

A: In a competitive firm there are large number of firms producing identical products thus acting as…

Q: uantity Price Total Fixed Costs Variale Cost Total Costs Average Variable Costs Average Total Cost…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A bakery sells pretzels. The fixed costs come to $8,750.00 per month. It will cost 35 cents to make…

A: Break-even point=Fixed costSelling price-Variable cost

Q: Walt's Turkey Farm produced 400 turkeys last week. The marginal cost was $15 a turkey, average…

A: Profit maximization occurs when Marginal Revenue is equal to Marginal Cost MC=MR In perfect…

Q: Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open…

A: As we know that fixed cast of the expenditure incurred on fixed factor which is not changeable as…

Q: uestion 9 of 20 Total Total Average Average Average Variable Total Marginal Variable Output (Q)…

Q: Karen runs a print shop that makes posters for large companies. It is a very competitive business.…

A: Given information, Market price=$1 Fixed cost=$250 Variable cost for 1000 posters=$1800 Variable…

Q: Suppose the cost data below are for Shopify. a firm based in Waterloo, Ontario that is in an…

A: Marginal Cost is the change in total cost with respect to change in total output. We are going to…

Q: Quantity of Radios Total Variable Cost Total Cost 0 $25 1 $13 $38 2 $28 3 $70 4…

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first three…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs

Multiple Choice

are $2.50.
are $1,250.
are $750.
are $1,100.

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

Step 1

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

Total revenue, total cost, and profit. Oscar runs a lemonade stand. He sells each cup of lemonade for $2.50. The variable cost per cup, including lemons, sugar, and cups, is 50.75. Additionally, Oscar has fixed costs of $20 for his stand and equipment. In a day, Oscar sells 50 cups of lemonade. Calculate Oscar's total revenue, total cost, and profit for the day. Provide your rationa
Nicole purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,000 per month, she needs to sell printouts of 27,000 sheets per month. The printing machine has a capacity of printing 35,300 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,200 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. ↑ % →
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate
Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans awhole house for $156. Her total cost each day is $1680, of which $480 is a fixed cost. She cleans 8 houses a day.(a)Should Laura shutdown her business in the short-run, assuming that she cannot recover her fixed cost?(b) Should she exit in the long-run?
Use Excel to show formulas used Amazing is evaluating three locations for a second headquarters. Costs for construction at location A are $18,900,000, Location B are $21,700,000 and Location C are $23,300,000. Variable costs for Location A are $16, Location B are $14 and Location C are $12. The company plans to sell products for $27. Create a cost-volume graph that shows cost lines for all three options through 2,000,000 units.
Ball Bearings Inc. faces costs of production as follows:Quantity Total Fixed cost Total Variable Cost0 200 01 200 502 200 703 200 904 200 1405 200 2006 200 360a. Calculate the company’s average fixed costs, average variable costs, average total costs, andmarginal costs. a. The price of a case of ball bearings is $50. Seeing that she can’t make a profit, the chiefexecutive officer (CEO) decides to shut down operations. What are the firm’s profits/losses?Was this a wise decision? Explain. b. Vaguely remembering his introductory economics course, the chief financial officer tells the CEOit is better to produce one case of ball bearings because marginal revenue equals marginal costat that quantity. What are the firm’s profits/losses at that level of production? Was this the bestdecision? Explain.
Danilo and his wife operate a restaurant where they sell all their meals for $14.00 each. The markup on each meal is $5.00 and overhead expenses are 19.00% of cost. a. How much does it cost them to make each meal? $0.00 Round to the nearest cent b. What is their operating profit per meal? 50.00 Round to the nearest cent c. Calculate the break-even price. Round lo the nerert rent
Our firm’s accountants have put together the following table of costs. Generators Solar Panels Fixed Costs $2 million $2 million Variable Costs $2 million $2 million Revenue $3 million $5 million The accountants have assured us that there are no places to save money. We are at our profit maximizing quantities of each product. We are as efficient as any firm could possibly be. In answering the questions below, do not just say lower costs or increase sales 1. How is this firm doing as a whole? How profitable are the two products individually? 2. What would you recommend this firm do in the short run? 3. What about the long run?
Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. What is the Total profit for Billy’s Bean Bag Emporium? Include in your answer your calculation
Bakery produces and sells grain bread. Monthly fixed costs are known, costs of raw materials and direct labour needed to bake one bread are given below as well. Calculate costs of raw material and direct labour needed to produce more pieces of bread. Then calcuate VC, TC, AC and MC. Quantity Fixed costs (EUR) Raw material costs (EUR) Direct labour costs (EUR) Variable costs (EUR) Total costs (EUR) Average costs (EUR) Marginal costs (EUR) 1 500.00 0.20 1.00 1.20 501.20 501.20 1.20 5 500.00 1.00 5.00 6.00 506.00 101.20 1.20 10 500.00 2.00 10.00 12.00 512.00 51.20 1.20 15 500.00 3.00 15.00 18.00 518.00 34.53 1.20 35 500.00 7.00 35.00 42.00 542.00 15.49 1.20 50 500.00 10.00 50.00 60.00 560.00 11.20 1.20 100 500.00 20.00 100.00 120.00 620.00 6.20 1.20 1,000 500.00 200.00 1,000.00 1,200.00 1,700.00 1.70 1.20 2,500 500.00 500.00 2,500.00 3,000.00 3,500.00 1.40 1.20 10,000 500.00 2,000.00 10,000.00 12,000.00 12,500.00 1.25 1.20
What is the relationship between the firm,total revenue,total profit and total cost
The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table. Output Total Variable Cost 1 $ 400 2 720 3 1,000 4 1,400 5 2,000 6 3,600 The average variable cost of the firm when 5 units of output are produced is Multiple Choice $100. $200. $300. $400.