Answered: 2. A firm produces 200 units and total…

2. A firm produces 200 units and total cost of production is $4000. When they increase output to 220, the cost rises to $4 200. What is the average cost of producing 220 units?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Related questions

Q: Output Total Cost 0 $4.00 1 $7.00 2 $8.00 3…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: 1. "If it were not for the law of diminishing returns, a firm's average cost and average variable…

A: As further amounts of an input that is variable get added to a fixed input, the additional output or…

Q: Use the following table to answer the questions: Output Total Cost 0 24 1 33 2 41 3 48…

A: Fixed costs are those cost that are remain the same throughout all the level of production. Variable…

Q: rkers) Output TFC ($) TVC ($) Total Cost ($) 0 0 50 0 1 8 50 40 90 2 20 50 80 3 28 50 120 170 4…

A: Given TFC = 50 TVC at 20 units = 80 TC = TFC + TVC = 130

Q: Vipsana's Gyros House sells gyros. She incurs a fixed cost of $120 per day. Vipsana pays $60 per day…

A: Fixed cost is the cost that remains same at all the level of output. Variable cost is the cost that…

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: 1.7 Use the information in the graph to find the values for the following costs at an output level…

A: Total fixed cost refer to the total expenditure which remain fixed at all levels of output . It does…

Q: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…

A: Cost Function = C = 4000 - 7Q + 8Q2 where Q = 5

Q: Mention and explain the cost components certainly do not exist in the long run?

A: The cost components include fixed costs and variable costs. Variable costs are the costs which vary…

Q: Suppose a company lIncurs the following costs: labor, $3,500; equipment, $900; and materials,…

A: Accounting costs are any expenses that your company has incurred.By deducting expenditures from…

Q: Use the table to answer the uestion below: Quantity Total Cost 0…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: (a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing…

A: Answer: Given values: To find: Marginal cost function and marginal cost (at 60,000) Average cost…

Q: From the information given in the table, calculate the marginal cost of the 3rd unit of output.…

A: Marginal cost measures the change in total cost due to change in output produced. Marginal cost =…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A: Ans. Quantity (number of units) Fixed costs ($) Variable Costs ($) Total…

Q: 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant…

A: The phrase "total cost" refers to all costs spent throughout the investing process, including the…

Q: The fixed cost element for the firm is a. $11,250 b. $10,250 c. $12.250

A: Mixed costs have a nature of fixed costs as well as variable costs. They have a certain fixed…

Q: Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over…

A: The economic concepts of average cost, marginal cost, and returns to scale are all relevant to the…

Q: 7. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco.…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost remains fixed at all level of…

Question

100%

2. A firm produces 200 units and total cost of production is $4000. When they increase
output to 220, the cost rises to $4 200. What is the average cost of producing 220
units?

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

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
In line with the information including the production amount and total cost of the firm and the double (half) average technique, write the total cost function of the firm by making the relevant calculations and calculate the total cost for the production of 1150 units. .
If output is 34 unit and total cost is $1300 Find average Cost
ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
Refer to the following: Output 0 50 100 150 200 Total Cost $ 300 800 1050 1650 2400 Average Variable Cost when 150 units of output are produced is $ 9 The additional cost of producing the 117th unit of output is $ Explain
uestion 10 Your Answer: $ Answer 18 30 25 20 10 100 200 300 Based on the attached graph calculate the total cost if y = 300. units ATC AVC Y
If total cost is $2100 and the output is 40 units Calculate average cost
2
SOLVE USING EXCEL PLEASE There is no more information to provide. This should be all that is necessary.
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars) 1 10 2 20 3 40 4 80 160 6 320 7 640 The efficient scale is houses.