What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
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A: A firm breaks even when it makes zero economic profit. It is a situation of no profit no loss.
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A: Given: Total Fixed Cost = 400. Average Total Cost = $3 Average Variable Cost = $2.50
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Q: When a firm produces one unit, the variable cost is $3. When the firm produces two units, the…
A: The variable cost of the first unit = $3 The variable cost of the two units = $6
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Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…
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A:
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A: Variable cost: VC = 0.6q0.8 Fixed cost: F = 1500 -------
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Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…
A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…
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A: Fixed Cost remains same at all levels of Output. Average Fixed Cost = Total Fixed Cost / Quantity
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A: Marginal cost (MC) is the change in total cost or total variable cost per unit change in output.
Q: When a firm produces one unit, the variable cost is $8. When the firm produces two units, the…
A: Marginal cost is the addition to the total cost. Total cost consists of total fixed cost and…
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- The following diagram shows cost curves for a perfectly competitive firm. SMC 2.60 ATC AVC 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output Price and cost (dollars)The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Quantity 0 It must fall. 100 200 300 400 500 600 It must rise to offset the increased cost. Total Cost Variable Cost (dollars) (dollars) $1,000 $0 1,360 360 1,560 560 1,960 2,760 4,000 5,800 Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level? The firm will shut down. O It will remain the same. 960 1,760 3,000 4,800Quantity of Output Total Cost 0 $12 1 $14 2 $18 3 $24 4 $32 5 $42 6 $54 7 $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm’s profit-maximizing quantity of hats? Explain using marginal analysis. (c) Draw a correctly labeled graph showing the firm’s demand and marginal cost curves, and show the profit-maximizing quantity of hats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm’s profit-maximizing quantity of output in the short run? Explain.
- The Trouser Company has fixed costs of 2,000 per week. In addition, we have some information about its marginal costs (MC) and total variable costs (TVC) Output 0 30 60 90 100 120 150 MC 140 59 32 59 80 140 275 TVC 0 2850 4080 5310 6000 8160 14,250 Sketch a diagram showing the marginal cost curve, the average variable cost curve, and the firm’s short run supply curve.Please explain every part in details A competitive firm has the following short-run cost function: C(y) = y3 − 8y2 + 30y + 5. (a) Find the firm’s marginal cost function. (b) Find the firm’s average variable cost function. (c) Sketch graphs of the marginal cost and average variable cost functions as functions of output, y. At what point does the average variable cost curve intersect the marginal cost curve? In what intervals does the average variable cost curve decrease and increase? (d) Sketch the graph of the firm’s short-run supply function. (e) What is the shut-down price.Using the given values in the table, illustrate a cost curve for this firm. Be as precise as possible.
- Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following production cost schedule. q Total Cost ATC AFC MC0 10 100 12 200 16 300 26 400 38 500 75 600 120Explain how the Average Total Cost curve is derived for a competitive firm in the long-run. Also, explain what is economies of scale.Total variable Quantity (dozens of sea shells per day) cost (dollars) 200 60.00 201 61.00 202 62.50 203 64.00 204 66.00 205 68.50 206 72.00 Sue's Sea Shells by the Sea Shore is a perfectly competitive firm selling sea shells at the market price of $2 per dozen. Sue's Sea Shells by the Sea Shore has fixed costs of $40 per day and a variable cost schedule in the table above. Based on this information, we can expect the number of firms in the sea shell market to a. increase. O b. remain constant. O c. decrease. O d. It is impossible to say.
- A firm has the demand and total cost schedules given in the following table. If it wants to maximize profits, how much output should it produce? Quantity Price Total Cost 1 $6 $ 1.00 2 5 2.50 3 4 6.00 4 3 7.00 5 2 11.0The table shows cost data for a firm that is selling in a perfectly competitive market. This firm's minimum average variable cost is $14 and has fixed costs equal to $100. Output 5 7 9 11 $30 Refer to the above cost table. If the price of the product is $26, the firm will produce loss. 7 units 9 units Select TWO answers from the choices below, one selection is the number of units produced and the second selection is the dollar amount of the loss earned by the firm. $28 $100 $0 $182 11 units ATC $34.00 30.00 30.55 33.09 O units MC $13 5 units 26 35 48 for aA perfectly competitive firm has the following short-run total cost. Quantity Total cost (in Taka) Average total cost Variable cost Average variable cost Marginal cost 4.0 9.0 2 12.0 3 17.0 24.0 33.0 44.0 (a) Calculate this firm's marginal cost for output level 5. Give your answer in 2-decimal places. (b) Calculate this firm's marginal cost for output level 6. Give your answer in 2-decimal places. (C) What is the average total cost at which, this firm reaches its break even-point? Give your answer in 2-decimal places. (d) What is the average variable cost at which, this firm reaches its shut-down point? Give your answer in 2-decimal places.
