The cost data in the following table are for Marshall's Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Average Variable Output 0 Cost Average Total Cost Marginal Cost Total Cost $125 1 $ 30 $ 155 $ 30 155 2 25 87.50 20 175 3 26.67 68.33 30 205 4 27.75 59 31 236 5 34 59 59 295 6 40.17 61 71 366 7 51.43 69.29 119 485 a. Complete above the table. b. What is the shutdown price? Shutdown price: $ 25 c. If the market price of the product is $59, what quantity will Marshall's Meats produce? What will be its profit or loss? Quantity: 5 Break-even :$ 0 d. If the market price of the product is $20, what quantity will Marshall's Meats produce? What will be its profit or loss? Quantity: 2 Loss $ 135

The cost data in the following table are for Marshall's Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Average Variable Output 0 Cost Average Total Cost Marginal Cost Total Cost $125 1 $ 30 $ 155 $ 30 155 2 25 87.50 20 175 3 26.67 68.33 30 205 4 27.75 59 31 236 5 34 59 59 295 6 40.17 61 71 366 7 51.43 69.29 119 485 a. Complete above the table. b. What is the shutdown price? Shutdown price: $ 25 c. If the market price of the product is $59, what quantity will Marshall's Meats produce? What will be its profit or loss? Quantity: 5 Break-even :$ 0 d. If the market price of the product is $20, what quantity will Marshall's Meats produce? What will be its profit or loss? Quantity: 2 Loss $ 135

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

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 9MC

See similar textbooks

Similar questions

Q8. For an X-ray lab, the fixed cost of equipment is 27,000,000 for the x-ray machine. The cost of a single x-ray is PKR 500. Each patient pays PKR 1150 for one x-ray test. Output Total Fixed Variable Average Average Marginal Fixed Cost Cost Total Marginal Cost Variable Cost Revenue Revenue Cost Cost 10 20 30 40 50 60 70 80 90 a. Fill the following table and draw graphs for each of the columns against output values. Calculate the breakeven point (if calculable from the data given). 100
The table below represents costs for producing pairs of sunglasses. Calculate the marginal cost of producing the 3rd pair of sunglasses. Round your answer to two decimal places. Quantity 1 2 3 4 Total Cost $31.50 $46.00 $55.50 $60.50 Marginal Cost $31.50 $14.50 $? $5.00 Average Total Cost $31.50 $23.00 $18.50 $15.13
The table below displays cost information for the production of volleyballs. Fill in the missing values corresponding to the empty cells. Quantity Average Variable Cost Fixed Cost Variable Cost Total Cost Marginal Cost 30 30 n/a 1 12 12 25 D 3 A 72 14 F A = type your answer. B = type your answer. C= type your answer. D= type your answer. E = type your answer.. F = type your answer.
Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $150
Consider the following cost information for apizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $ 01 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria’s fixed cost?b. Construct a table in which you calculate themarginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using theinformation on variable cost. What is therelationship between these sets of numbers?Explain.
Average Marginal Quantity Total Cost Total Cost Cost О $10.00 1 15.00 $15.00 $5,00 2 17.50 8.75 2.50 3 22.50 7.50 5.00 4 30.00 7.50 7.50 5 40.00 8.00 10.00 6 52.50 8.75 12.50 7 67.50 9.64 15.00 8 85.00 10.63 17.50 9 105.00 11.67 20.00 Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q), total cost (TC), average total cost (ATC) and marginal cost (MC). Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00? Q = 0; profit = -$10.00 O Q = 1; profit = -$10 Q = 3; profit = -$7.50 O Price and profit cannot be determined from the information given.
10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)
Consider the following cost information for a pizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $0I 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria's fixed cost?b. Construct a table in which you calculatethe marginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using the inforpmation on variable cost. What is the relationshipbetween these sets of numbers? Explain.
Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $7,500 if she had used the company's inputs in a different way. Calculate Audra’s economic profit.
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?
Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company’s total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 0 120 — — 1 200 2 240 3 285 4 340 5 425 6 540
Many hospitals have regularly scheduled surgery and active emergency departments. Based on the information in the Mini-Case "Medical Economies of Scope," could it be cost effective to have separate emergency centers? What do you think are the reasons for these economies or diseconomies of scope? According to the information in the Mini-Case, having emergency centers separate from non-emergency services OA. would be cost effective due to diseconomies of scope. OB. would not be cost effective due to diseconomies of scope. OC. would not be cost effective due to economies of scope. O D. would be cost effective due to economies of scope.