Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999, the firm's profits equal $4,990. O $5,000. $5,020. $4,980.

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999, the firm's profits equal $4,990. O $5,000. $5,020. $4,980.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

See similar textbooks

Related questions

Q: Wing Al corporation produced and sold 600 units of output. The total cost of production was $30,000.…

A: Given information: The output produced is 600 units. The total cost of production was $30,000 Each…

Q: We begin by solving the consumer’s problems: (a) What is the US’s budget constraint? (b) Describe…

A: In this case, we have to discuss the budget constraint. Budget constraint is total available money…

Q: In the line of corruption and scams, explain the three layers of Money laundering. What is…

A: The act of making unlawfully obtained monies look legitimate is known as money laundering. It…

Q: Would an increase in yuan in exchange for the dollar be good news or bad news for U.S. firms such as…

A: The value of one currency in respect to another is referred to as the exchange rate. It refers to…

Q: a) Solve for the Net Present Value of the alternatives A and B using interest rates from 0% upward.…

A: Net present values refers to the discounted values of the future cash flow .

Q: Suppose the money market for some hypothetical economy is given by the following graph, which plots…

A: The money demand curve illustrates the quantity of money demanded at each interest rate, keeping…

Q: Find the unknown quantity, assuming compound interest: 7988 (g) 1000 i=8% n=?

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

Q: Cournot’s Model of Duopoly) Joe and Rebecca are small-town ready-mix concrete duopolists. The market…

A: Cournot duopoly is defined as the market scenario in which two producers simultaneously choose the…

Q: 8. In a perfectly competitive industry, a change in fixed cost will have no effect on price in the…

A: When costs of production change, price will change by less than any change in cost of production in…

Q: Complete the following table, which shows the amount of ore produced (measured in tons) when various…

A: Total product is the total amount manufactured per a set of resources, average product is the…

Q: How can a tax cut increase investment, and what is the impact on the economy?

A: A tax is a compulsory financial charge or levy imposed by a government on individuals, businesses,…

Q: uring december, sara deposited 500 aed into her account and withdrew 120, 60.25, and 39.75 aed her…

A: A deposit is a sum of money that is put into a bank account or other financial account.

Q: Explain the characteristics of mixed economy???

A: A Mixed economy framework is a mix of both entrepreneur and communist goals permitting security of…

Q: Scenario: Aggregate banking statistics show that collectively the banks of CountryA hold $300…

A: Given:Required reserves = $300 million Excess reserves = $75 million Deposits = $7,500 million…

Q: How do you calculate personal income before or after taxes?

A: Understanding how to determine the pre-tax income is critical when computing income tax returns or…

Q: What is Stagflation?? Describe

A: Inflation frequently remains inseparable with financial development as consumers are willing and…

Q: In the figure above, a monopoly will set price b d a C

A: A monopoly firm produces at the intersection of MR and MC curves. A perfectly competitive firm…

Q: Last month a record company sold 10,000 records at $5 each. This month it sold 11,000 records at…

A: Supply curve shows different levels of quantity supplied at different prices.

Q: Covid-19 global economic pandemic has negatively affected economies as a whole at the global,…

A: The Covid-19 pandemic has had a significant impact on the global economy, with many countries…

Q: The table below presents the demand schedule and marginal costs facing a monopolist producer. P (S)…

A: Total revenue refers to the revenue a firm generates from operations or sales at different levels of…

Q: Sophia is a contestant on a game show and has selected the prize that lies behind door number 3. The…

A: The Monty Hall problem is a classic probability puzzle. In this problem, the player is asked to…

Q: advantage of human poverty index

A: The Human Poverty Index (HPI) is a composite index that measures poverty in developing countries…

Q: A good measure of the standard of a country's living over time is real GDP per capita total real…

A: Gross domestic product (GDP) measures the money value of all final goods and services produced in an…

Q: Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of…

A: ***Since the student has asked to solve a specific part of the question, hence, the expert is…

Q: 1) Suppose that Player A can take two actions, either Up or Down. Player A is thinking to choose…

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

Q: to calculate the inflation rate since the previous period. (Round to two decimals. List the answers…

A: Inflation rate is the rate at which the price level increases over the period of time. Inflation…

Q: Which of the following statements is true? a) None of the other possible answers are true. b)…

A: In order to assess the relationship between a dependent variable and one or more independent…

Q: Explain what is the market power of a company. How can it be measured? What does it depend on?…

A: A place or institution or (means) in (by) which buyers (consumers) and sellers (producers) interact…

Q: Use the graph to answer the question. The marginal social benefit, marginal private benefit, and…

A: Positive externality refers to the spillover benefit of the good to the society, which is not…

Q: Suppose 2,000 people would each get a benefit of $60 from a levee. Building the levee is socially…

A: Social efficiency is achieved with the optimal distribution of resources in a society taking into…

Q: Question: What Are The Variables For Conditional Convergence For An Economy

A: Conditional convergence is a principle that indicates that poorer countries, in terms of per capita…

Q: The economy of Ashenvale is currently in a long-run equilibrium, depicted by point E, on the graph.…

A: Aggregate demand is a sum of consumption spending, investment, government spending and net exports.

Q: Taxes on specific types of business activity panama Grupomerica Full explain this question very…

A: A tax is a mandatory financial charge or levy that the government imposes on citizens or…

Q: Can economic profit ever exceed accounting profit? Explain.

A: Profit is the financial gain that a business or an individual earns after deducting all expenses…

Q: Exhibit 15-7 Personal consumption expenditures Interest Corporate profits Government spending…

A: One of the broad indicators of a country's economic development is national income. It more properly…

Q: Consider the Solow growth model without population growth or technological change. The parameters of…

A: The study of production function examines the relationship between the physical inputs and the…

Q: Scenario 1: Individual Retirement Accounts (IRAS) allow workers to shelter a portion of their income…

A: The equilibrium in the market for loanable funds occurs at the intersection of demand and supply…

Q: Use the graph to answer the question. The marginal social benefit, marginal private benefit, and…

A: When market forces prevail, then marginal private benefit=marginal private cost. ( Marginal social…

Q: During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America…

A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…

Q: You have been tasked with developing a research report based on an economy of your choice anywhere…

A: Economic fundamentals are the core ideas and elements that underpin how an economy operates. These…

Q: The "pizza connection" refers to the observation that in a major city, the cost of a slice of pizza…

A: CPI refers to an important economic metric. CPI Calculates the average change in prices paid by…

Q: Kate's money income is $350, the price of X is $4, and the price of Y is $6. Given these prices and…

A: Marginal Rate of Substitution (MRS), which is the rate at which a consumer is willing to trade one…

Q: Choose a country of your choice and answer the following questions: I) is there any income…

A: Income is the money received by a person or institution during a certain time period, usually a…

Q: When a market is in equilibrium, the economic problem has been solved. Comment on the truth or…

A: Market equilibrium refers to the point at which the quantity demand is equal to the quantity…

Q: 6. The Fisher effect and the cost of unexpected inflation Suppose the nominal interest rate on…

A: Real and nominal interest rates are two different concepts used in finance and economics. The…

Q: Two partners start a business. Each has two possible strategies, spend full time or secretly take a…

A: In game theory, a Nash equilibrium is a stable state in which no player in a game has an incentive…

Q: The table below shows the index numbers for the cost of a basket of goods and services in each…

A: Inflation rate is the rate at which the price level increases over the period of time. Inflation…

Q: Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² +…

A: Profit is the difference between the total revenue and total cost. Total profit is maximum where…

Q: Suppose the world price of tobacco falls significantly. The demand for labor among tobacco-producing…

A: A person who is able and ready to work finds themselves unemployed when they are unable to obtain…

Q: Consider an economy characterized by the following facts: • The debt-to-GDP ratio is 40% • The…

A: Given: The debt-to-GDP ratio is 40% The primary deficit is 4% of GDP The growth rate of GDP is 3%.…

Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost
equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999,
the firm's profits equal
$4,990.
O $5,000.
$5,020.
$4,980.

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

Gooey Bites sells snack packs for $3 per pack. Variable expenses involved in producing snack packs are estimated to be $1 per pack and fixed costs for operating the production line are estimated to be $14,000. After making changes to the production line, Gooey Bites made a profit of $36,000 by selling 20,000 snack packs. Variable costs were modified by the line changes but fixed costs were unaffected. What is the new variable cost per pack? a. $0.33 b. $0.50 c. $1.00 d. $1.50
In the short run , a firms total cost is $200 if it does not produce any units of output. Its variable cost is $10 per unit . If the firm produces 5 units , variable costs are ____________, while fixed costs are_____________ a) $20; $200 b)$20; $250 c) $50;$200 d)$50;$250 e) $250;$450
The following is a table of the total cost (TC) of producing output Q for a particular firm. Based on this information, which of the following statements is correct? Q Y TC (X) 10 140 20 210 30 265 40 310 50 360 60 420 O a. The marginal cost is higher than the average cost at Q = 50. Ob. The marginal cost at Q80 is £9.50. Oc The average cost at Q-40 is £7. Od. The marginal cost curve intersects the average cost curve at Q = 60. 490 8 60 570 8 90 660 100 760
1. A firm estimates its production function as Q = -2.4 + 20*L -.5*L< + 30*K -1.00*K2 + 15*F -.3*F<. Total cost is TC = $2*L+ $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, K and F. How much F (Fuel) should the firm use? A.F=7.90. B.F=9.58. C.F=10.75. D.F=12.63. E. F=14.88.
If the total output produced by the firm is 10 units. The average total cost is $30 and the average fixed cost is $10. The total variable cost equals $30. O $200. $20. $300.
In the short run at Q=0, a firm's fixed cost is 30. At Q-1, marginal cost is $25. What is the variable and total costs at Q= 12 O 20; 50 O 27; 55 25, 50 O 25; 55
Output Total Cost 0 $400 1 $900 2 $1,300 3 $1,600 4 $2,000 5 $2,500 6 $3,100 The above cost data are for a firm operating in the short run. Based on the table, which of the following is correct? Average variable cost of producing three units of output is $400. Average fixed cost of producing 4 units is $500. Diminishing marginal returns set in with the production of the third output.
Suppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of $900. If the firm produces and sells 151 units, its total revenue is $1,005, and its total costs are $950. Should the firm produce and sell the extra unit? Group of answer choices yes, since marginal profit is positive yes, since profits are positive no, since marginal profit is negative no, since marginal profit is positive You have recently learned that the company where you work is being sold for $1,000,000. The company's income statement indicates next year's profits of $30,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and the interest rate will remain constant at 7%, at what (constant) rate does the owner believe that profits will grow? (Hint: the price the owner was willing to pay is the present value of the firm's future cash flows) Group of answer choices 6% 5% 4% 4.5%
A firm has a fixed production cost of $20,000 and a constant marginal cost of production of $1,000 per unit produced. What is the firm's total cost function? O A. TC = 20,000 + (1,000q). ОВ. ТС-1,000g. O C. TC = 20,000. OD. 20,000 + (1,000q) TC =-
Q1.It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. Required: (i) Make a table showing the cost of producing 20,40,60,80 and 100 cupcakes. (ii) Make a table showing the revenue from selling 20,40,60,80 and 100 cupcakes. (iii) Write an algebraic expression representing the cost C as a function of the number of cupcakes x that are produced. (iv) Write an algebraic expression representing the revenue R as a function of the number of cupcakes x sold. (v) Graph both functions on the same coordinate axes. (vi) From your graph find coordinatae at which cost equals revenue. (vii) Using your graph,determine how many cupcakes need to be made to produce revenue of at least $1,029.How much profit is made for this number of cupcakes?
$ 90 70. 40 30 $50. $30. $60. 50 $40. MC 100 Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the average fixed cost is: Figure 8.3 ATC AVC
37 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost E of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Q = 150, Average Total Cost (ATC) is equal to: Select one: а. $3.33 b. $900 c. $6.00 d. $2.67