2. There are three student canteens serving different types of foods located at the campus. Table below shows the total costs of the catering services according to the number of students served. Number of students served Smile Canteen Rainbow Canteen Happy Canteen 500 15000 16000 19000 28000 32000 58000 108000 40000 1000 2000 50000 80000 4000 80000 168000 6000 114000 156000 258000 (a) Comment on the scale of production of these three canteens. (b) The owner of Happy Canteen decides to sell the business. The owner of Smile Canteen shows interest in it and has done an estimate on the total costs of running the two canteens under one ownership. Based on the estimates below, do you recommend the owner of the Smile Canteen to pick up the business of Happy Canteen? Explain. | Number of students served in each canteen "Smile plus Happy" Canteen 500 40000 1000 65000 2000 110000 4000 215000 6000 390000

4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Denver. The following table shows the company’s total cost of production at various production quantities.

The graph shows the short-run cost curves of a toy producer. The market has 1,000 identical toy producers. The market price of a toy is $21. In the short run, the firm produces toys a week. 24- 21- 18- 15- 12- 9- 0 500 1000 1500 2000 MC ATC AVC 2500

Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0     1000         1   100           2             100 3   400           4           450   5   1600           6   3200           7   6400           a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?

economic

Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table. Number of Photocopies Per Month Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $100         1,000 $110         2,000 $125         3,000 $145         4,000 $175         5,000 $215         6,000 $285         a. Fill in the missing numbers in the table, assuming that Margie can charge 6 cents per black-and-white copy. Margie's fixed cost is: $       Variable cost, 0 photocopies/month: $     Variable cost, 1,000 photocopies/month: $     Variable cost, 2,000 photocopies/month: $     Variable cost, 3,000 photocopies/month: $     Variable cost, 4,000 photocopies/month: $…

solution plz

A small coffee house has the following costs:  building and pizza oven rentals 100,000  labor 120,000owners salary given up 85,000 value of entrepreneurial talent 30,000 raw material 100,000 Bank loan payment 15,000 interest given up by owner 5,000 revenue for the firm is expected to be 420,000 for the year.  a. List by name and amount the firms fixed explicit costs  b. List by name and amount the forms variable explicit costs c. List by name and amount the forms implicit cost  d. Calculate the firms accounting profits and its economic profit e. Should the firms continue business in the long term if revenues and costs continue at the same lev? Why or why not?

variable fixed cost cost average total cost variable cost marginal total revenue marginal total cost wt price $20 revenue profit 1700 0 1700 0 0 -1700 1700 500 2200 5 5 2000 20 -200 1700 1200 2900 6 7 4000 20 1100 1700 2700 4400 9 15 6000 20 1600 1700 5200 6900 13 25 8000 20 1100 1700 9000 10700 18 38 10000 20 -700 1700 15000 16700 25 60 12000 20 -4700 1700 23800 25500 34 88 14000 20 -11500 1700 36800 38500 46 130 16000 20 -22500 1700 55800 57500 62 190 18000 20 -39500 1700 83000 84700 83 272 20000 20 -64700

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