11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its implicit costs must be A) $100. B) $200. C) $300. D) $400

11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its implicit costs must be A) $100. B) $200. C) $300. D) $400

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

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

See similar textbooks

Related questions

Q: 3. Suppose that ABC company plans to build a subway train to provide better alternatives for…

A: Efficient level of output is said to be the point deviating from which consumer surplus cannot be…

Q: In the Solow growth model with population growth and technological progress, the growth rate of…

A: The Solow growth model makes an assumption that the production function will be exhibiting constant…

Q: 2. Jane works for 6 hours per day as a part time barista at Starbucks. She earns $15 per hour for…

Q: How do Quits and Layoffs help Improve Labor Market Efficiency?

A: Labor market refers to the market structure where there is an interaction between the employees and…

Q: Refer to the table below, which presents a cost schedule for a perfectly competitive firm. Quantity…

A: "In a perfectly competitive industry, firms sell similar products or services. Firms in this…

Q: Production schedule for Alpha and Beta (per day) Economy Product Alpha Oranges Apples Oranges Apples…

A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…

Q: Refer to the table below, which presents costs associated with a small business selling cookies.…

A: "When firms produce a product or a service, they incur cost which is known as total costs of…

Q: While a consumer's nominal income (M) and the price of good y (Py) remain constant; the price of…

A: In the case of the Giffen good, The increase in the price has the usual substitution effect of…

Q: (c) Find the marginal products of capital and food.

A: as it is mentioned to do the 3(C) part Given in question - the production function for parrot…

Q: (d) Suppose government spending increases by some amount AGo to become Go+AGo. Show the change in Y…

Q: The following table shows the output of rice and cotton for Country A and Country B. Each country…

A: "The law of comparative advantage is based on the principle of opportunity cost. It states that an…

Q: The function Q= 14 - P represent the market demand. The cost function of the monopolist is C= 2Q.…

A: Given Demand function: Q=14-P Cost function: C=2Q The profit-maximizing condition for monopoly is…

Q: Chonamae wants to open a cat cafe with her friends Yolanda and Francis. However, Francis has a…

A: A person or entity that owns shares in a corporation is referred to as a stockholder, sometimes…

Q: 9. The demand function for a certain product is given by q = 500-2p. a. Is the demand function…

A: Demand function depicts a connection between one variable and its determinants. It depicts how much…

Q: pair, and milk cost $3 per gallon. In 2009, the price of pizzas increased to $14 each, while the…

A: Basket Value means the sum of the Weighted Performance (Basket Value) of each Underlying Asset in…

Q: In the Solow growth model, if the economy's actual capital stock per worker is greater than the…

A: The Solow Growth Model is an exogenous neoclassical model of economic growth that analyzes changes…

Q: Consider a market where supply and demand are given by QS =P-20 and QD =130-2P, respectively.…

A: Deadweight loss is a measure of the inefficiency that results from market distortions such as taxes,…

Q: Electrical switch manufacturing companies must choose one of three different assembly methods.…

A: In this method of comparison, the cash flows of every option will be decreased to time zero by…

Q: P1: Economic Applications of Functions and Derivatives a. Sketch the graph of the short run total…

A: Costs are determined by the quantity of various inputs put into the production of certain amount of…

Q: Give an example of a trade-off faced by society.

A: Since the multiple questions have been posted, the solution only to the first question is provided…

Q: The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the…

A: The responsiveness of an item's amount sought or provided to a change in its price is referred to as…

Q: Choose the correct answer for the following statements : i. Increased competition in a…

A: (1) Monopolistic competition is a sort of flawed competition with the end goal that there are…

Q: 1. 2. 3. Which of the following statements is true? O a. The goods and money markets can never be in…

A: 1. All the purchasing and selling of products and services is referred to as the "goods market." By…

Q: What are the values of PX and PY in the general competitive equilibrium of this economy? Why?

Q: Assume the following demand function for cigarettes: In Qa=1.0-0.5 In Pc- 0.2 ln P₁+ 0.75 In Y + &…

A: Demand sensitivity to changes in consumer income is gauged by the term "income elasticity of…

Q: 2 Consider a Specific Factors model with two countries, Home H and Foreign F, three factors of…

A: Autarky is a condition of self-sufficiency in international trade theory. The countries which are…

Q: Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the…

A: The international institutions help in managing trade concerns among the countries and providing a…

Q: From April 1 through October 31, Coles County Highway Department hires temporary employees to mow…

A: From April 1 through October 31, Coles County Highway Department hires temporary employees to mow…

Q: Suppose that the economy's long-run output level is produces accourding to the following production…

A: The production function shows the functional relationship between the inputs and the output…

Q: Consider the endogenous growth model with two sectors: manufacturing firms and research…

A: Endogenous growth theory emphasizes the significance of population expansion, human capital, and…

Q: Refer to the table below, which presents information on the total utility Alice derives (expressed…

A: "Consumers consume goods in order to get satisfaction or utility. Marginal utility represents…

Q: Show solutions to each problem: Write your answer on yellow paper and upload it. Write legibly and…

Q: economics of European Union EU regional policy needs to move away from funding traditional…

A: Regional policy, in the context of economics, refers to the measures adopted by governments or other…

Q: Assume the following demand function for tilapia and the mean values of the variables: Qd = 2.5 - 6…

A: Price elasticity of demand depicts the responsiveness of change in the quantity demanded for a good…

Q: Consider a closed economy where the goods and money markets are described by the following…

A: C = 500+0.8(Y-T) I=500-10r M/P = 0.1Y-35r G=800 T=200 M=1000 P=2

Q: Suppose the price elasticity of demand for the market of mobile phones is 0.90. If all…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the 'mpc' ? a) 1/3 b) 1/2 c) 2/3 d) 4 e) 3/4

A: MPC is the marginal propensity to consume. MPC is calculated as the change in consumption divided…

Q: Which of the following statements describes the LM curve? O a. It has a negative slope. O b. It…

A: For the liquidity-money (LM) curve, dependent variable will be the rate of interest while the…

Q: Suppose company plans provide Filipino commuters to avoid heavy traffic and delay during rush hour.…

A: Efficient level of output is said to be the point deviating from which consumer surplus cannot be…

Q: a. If money supply is equal to 90, what are the values of equilibrium interest rate and investment…

A: The money supply in the economy is set by the central bank. It remains constant at each level of…

Q: Macroeconomic uncertainity and investment, discuss.

A: Macroeconomic uncertainty is defined as the dependent time-varying standard deviation of a variable…

Q: Identify the immediate effect of each of the following events on the U.S. GDP. List the affected…

A: GDP is the gross domestic product. GDP is defined as the total production of goods and services in…

Q: Consider the following Keynesian national-income model, Y=C+ Io + Go C = a + b(Y-To) where a and b…

A: National Income(Y) refers to income generated from the production of goods and services by an…

Q: What is the value of the "simple income multiplier" for autonomous spending? a) 0 b) 1/2 c) 3/2…

A: Marginal propensity to consume is change in consumption divided by change in income. mpc = (50 - 20)…

Q: Find the amount due on Feb 10,2005, if the present value on Dec.13,2004 is P10,100 at 12.4% simple…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Given an upward-sloping short-run AS curve, expansionary fiscal policy (ceteris paribus) will result…

A: The total amount of products and services generated in an economy that will be made accessible by…

Q: Solve the attachment

A: A monopolistically competitive firm maximizes profit at the intersection of the MR and MC curve A…

Q: To correct for inflation when calculating real debt, one must: O a. add the inflated debt and the…

A: The amount of debt that remains after adjusting for the effects of inflation is referred to as "real…

Q: 1. Is the price elasticity of demand for gasoline more INELASTIC over a shorter or a longer period…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: In one figure, graph the two individual supply curves and the market supply curve (assume that the…

A: Market supply is the sum of all individual supplies for a product sold by sellers in the…

Question

11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for
producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its
implicit costs must be
A) $100.
B) $200.
C) $300.
D) $400
Answer: B
Diff: 2
Topic: Behavior of Profit-Maximizing Firms
Skill: Analytic

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

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Jasmine decides to make and sell jelly cups. It costs jasmine Rs.1000 to set up and Rs.50 per cup made. She decides to sell each cup for 150. By using this information, answer the following questions: A) Write and equation for jasmine's revenue, cost and profit functions? B) Graph each function on a set of axes? C) Find the breakeven point from these graphs? ( D) How many jelly cups will jasmine need to sell in order to make a profit? (E) If jasmine wishes to make a profit of 50, how many jelly cups does she need to sell?
Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?
Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
Find TC, MC, AFC, AVC, and ATC from the following table.Instructions: Enter your responses rounded to two decimal places. Units (Q) FC($) VC($) TC($) MC($) AFC($) AVC($) ATC($) 0 100 0 — — — — 1 100 40 2 100 60 3 100 70 4 100 85 5 100 130 (Note: Marginal costs should be interpreted as between levels of output.)
The figure shows a bakery's marginal and average cost curves, and its isoprofit curves. The bakery is a price-taker in a large bread market. Suppose the current market price is P₁. Based on this information, which of the following statements is correct? Price, Cost €6 (5 20 40 60 80 Quantity MC hoprofits AC 100 120 140 160 180 number of loaves Select one or more: a. The bakery would be better off raising its price up to its AC level. O b. The bakery would be minimising its loss at A. Oc. If the bakery is not yet in the market then it would not enter the market. d. If the bakery is already in the market, then it would always immediately exit the market because it is making a loss.
Refer to the diagram. At the profit-maximizing output, total variable cost is equal to: MC ATC AVC Dollars ABC H G 0 K DE Quantity 1) ABGH. 2) OCFE. 3) OBGE. 4) OAHE. MR
Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.
32. What is the definite rule to maximize profit? Explain.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 25,400 $104,000 $0.54 50,400 154,000 1.04 75,400 191,500 2.54 100,400 279,500 3.04 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $2.54. At that price the total market quantity demanded is 105,560,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.54 is only 75,400. How many firms will be in this industry? firm(s)
3. Two poultry farms supply companies with chicken feeds. The unit costs of shipping from the farms to the companies are given on the table below. The farm's goal is to minimize the cost of meeting customer's demands. (a) Generate a mathematical model for finding the least cost way of shipping chicken feeds from the farms to the companies. (b) if the demand of company number 2 increased by 3 units. By how much would the costs increase? Show your solution. Ic). Solve the total cost using the solver add-in in excel From Company 1 Company 2 Company 3 Supply Farm A 55 65 80 35 Farm B 10 15 25 50 Demand 10 10 10
ollingOnelED.. App Inventor Tic Ta... Calendly-Kathryn.. eaaesID JO Ə V Diane owns a store that sells computers. Her profit, in dollars, is represented by the function P(x) = x - 22x2 - 240x, where x is the number of computers sold. Part A: Diane hopes to make a profit of at least $10,000 by the time she sells 36 computers. Explain whether or not Diane will meet her goal. Justify your reasoning. Part B: Diane states that there are three possible values of x for which she will have a profit of$0. Find the values of x that produce a zero profit to show whether Diane is correct or not. Justify your reasoning.
A man managing a restaurant for $20,000 per year decides to open his own diner. His revenue during the first year of operation is $110,000, and his expenses are as follows: Salaries, $55,000; Supplies $11,000; Rent, $9,000; and Utilities, $1,500. He financed the diner with a loan of $70,000 at a 5% interest rate. Calculate: a. explicit costs b. implicit costs c. business profit d. economic profit