VC AVC TC АТС MC $0 $0 $30 $0 $0 1 $40 $40 $70 $70 $40 $100 $50 $130 $65 $60 $180 $60 $210 $70 $80 4 $330 $82.5 $360 $90 $150 If the firm can sell its product for $60, it will not sell 2 units and incur losses of $10 sell 1 unit and incuur losses of $10 а. h
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- Automobile traffic creates two types of operating costs thatare not created by rail traffic. What are they?Use the diagrams to answer the following questions. Price and cost 20- 18 16- 14- 12 10 8 6 4 2+ o Market 1 488888 MC NO₂ MR 40 55 an in en nn minn Price and cost 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0 Market 2 0000000 MC NMR Annnnn in ED ORA on noinn If the firm wants to maximize profits, what price will it charge in Market 1, and what quantity will it sell? The firm will charge a price of $ using integers). Q and will sell a quantity of units. (Enter numeric responses300 250 57 200 150 100 50- 05. Average Fixed Cost at Q=10 is O (a) $90 0 Q 0 2 4 6 8 10 12 14 16 18 20 O (b) $10 O (c) $40 O (d) $9 O (e) $14 TC Type here to search TVC B TFC 30 225 20 15 10 5 69 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 0- 0 2 4 6 8 10 12 14 16 18 20 Save All Answers MC AC AVC H AFC Save and Submit Q DELL
- TP/ Q PRICE TR MR AR TC MC PROFIT 0 50 0 0 0 120 30 -120 1 50 50 50 50 150 25 -100 2 50 100 50 50 175 18 -75 3 50 150 50 50 193 25 -43 4 50 200 50 50 218 30 -18 5 50 250 50 50 248 34 2 6 50 300 50 50 282 40 18 7 50 350 50 50 322 50 28 8 50 400 50 50 372 55 28 9 50 450 50 50 427 58 23 10 50 500 50 50 485 15 1. What is the output level that maximizes the profit? 2. At this level, how much are the firm's profit? 3. Identify the level at which the firm should shut down?IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon. 1. Fixed costs (per year) Rent Utilities Managerial salaries Flammability permit Other fixed expense Total fixed $18000 13200 20000 12000 2400 $65600 Variable Costs per gallon Glycol FreezeFree 312 Mfg labor Packaging Inert ingredients Advertising Total $1.50 .50 .20 .20 .60 .30 $3.30 What is the annual breakeven production quantity (use above data, show work)? 2. What revenue would the sale of the breakeven quantity for $5.50 per gallon generate? 3. The production department says 29000 gallons is its maximum production capability. Management insists on earning $94400 above fixed costs. All costs are as given initially. What price must be charged per gallon if only 29000…Homework (Ch 10) 8. The effects of property rights on achieving efficiency Consider a lake found in the town of Center Barnstead, and then answer the questions that follow. The town has a hiking lodge whose visitors use the lake for recreation. The town also has a research lab that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the research lab's waste decreases the hiking lodge's economic profit. Suppose that the research lab could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the hiking lodge would no longer be affected. If the research lab uses the recycling method, then the research lab's economic profit is $1,500 per week, and the hiking lodge's economic profit is $1,800 per week. If the research lab does not use the recycling method, then the research lab's economic profit is $2,000 per week, and the hiking…
- C or prouuctiol 13 INCIeaseu. 15. A certain firm has the capacity to produce 840,000 units of product per year. At present, it is operating at 60% of capacity. The firm's annual income is $504,000. Annual fixed costs are $212,000, and the variable costs are equal to $0.392 unit of product. What is the firm's annual profit or loss? Answer: $94,432 profit b. per а. At what volume of sales does the firm break even? What will be the profit or loss at 75%, 85%, and 90% of capacity on the basis of constant income per unit and constant variable cost per unit? bas c.Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set: Annual demand Current order qu Carrying cost Order cost 3.920 sets 30 sets $80.00/set/year $200 a. What is the current total annual cost (TC) b. What is the economic order quantity (EOQ)? c. What is the total annual cost at the economic order quantity (EOQ)based on the information in the table what is marla's profit margin? total revenue-$1,400total cost- $900average cost- $7fixed cost-$700quantity-200
- (a) What is the profit-maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $ 2.50 per slice? MC S/slice ATC AVC 2.50 1.40 slices/day 570Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate," you must show how you arrived at your final answer. Use the following graph to answer parts (a)-(e). Prices and costs are in dollars. 30 /MC ‚ATC 27 24 21 18 15 12 9. 6. 3 0 4 8 12 16 20 24 28 32 36 40 MR Quantity The graph above shows the demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves for one of many profit-maximizing firms operating in the short run in an industry in which there are no barriers to entry. Each firm sells a similar but not identical product. (a) What will happen to total revenue if the firm raises the price from $9 to $12? Explain. (b) At 16 units, is the firm producing at the allocatively efficient quantity? Explain. (c) If the firm produces 12 units, will the firm's economic profit be…Plant sizes get larger as you move from ATC-1 to ATC-4. Output 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 ATC-1 $ 10 8 9 12 15 18 20 24 29 35 ATC-2 15 12 10 8 6 10 12 15 19 25 ATC-3 $ 20 17 15 13 11 9 7 11 13 15 ATC-4 $ 30 25 20 18 16 14 12 10 8 9 In the long run, the firm should use plant size ATC-3 for what level of output?