Q: If the firm hires 5 employee, total fixed costs equals
A: Total fixed cost is the cost which is even exits when output is zero. So at zero output we have the…
Q: rease in the short run ease in the short run
A: Cash balance refers to the part of income that people want to hold as cash in hand.
Q: If you were a taxi driver, the daily revenue and cost are as the following: Revenue: $250 Variable…
A: For the profit maximization process, so as to operate the business today, variable cost has to be…
Q: A production function is given by f(x1,x2)=(max(x1,x2))^0.5. Prices of inputs are p1=10 and p2=20.…
A: Price of inputs for X1 and X2 are 10 and 20 respectively. Firm want to produce Q=10 units.
Q: A small business consists of an owner and a seamstress. The seamstress can sew 20 dresses per month.…
A: Answer
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A: A production function represents the relationship between inputs and outputs. The law of diminishing…
Q: LRMC LRAC Economies of Scale Minimum LRAC Quantity Cost Diseconomies of Scale
A: The given graph belongs to economies of scale. Economies of Scale is the situation of efficient…
Q: During short period, diminishing returns may follow because
A: To find : What results in following diminishing results.
Q: Suppose the relationship between your study time and your grade on a History midterm is given by the…
A: Marginal analysis is an assessment of the additional advantages of an operation relative to the…
Q: en to salaries and wages when you are in a production/manufacturing business that you want to…
A: 1a. .In long run as part of more than one business cycle, all cost become variable. In short run…
Q: If a firm quadruples (4x) in size and output triples(3x), what is the returns to scale? a.…
A: The markets are the place where the buyers, and the sellers of the goods, services, and other…
Q: You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned…
A:
Q: The first unit of a product took 1,000 hours to build and the learning curve is 85%. How long will…
A: To produce the first unit takes 1000 hoursTo produce second unit = TN=T1(Nb) T2=1000×(2log2 0.85)=…
Q: The marginal cost of producing the xth box of light bulbs is 4+ dollars per box. Determine how much…
A: The total cost of production refers to the monetary value of all the final inputs used in the…
Q: At its best possible output level, a firm has total revenue of Rs. 7000 per day and total cost of…
A: Total revenue of the firm = Rs 7000 Total cost of the firm = Rs 14000
Q: If the marginal value of some variables is above the average value of the variable:* the marginal…
A:
Q: Given the production function of F(K,L) = sqrtKL If the short run has a fixed K of 5 units, which…
A: Here the production function of F(K,L)=KL the short run fixed capital k=5 units so, F(K,L)=KL=5L…
Q: Nancy Lerner is trying to decide how to allocate her time in studying for her economics course.…
A: "Since you have posted a question with multiple subpart,we will solve first three sub-parts for…
Q: A firm producing 1000 units at a total cost of $5000, if it were to increase production to 1001…
A: "Input refers to the raw materials, factors of production or resources used in the process of…
Q: ) The short run is a time period in which: (a) all resources are fixed.…
A: In economics, we study the interaction and the decision-making of the economic agents at the…
Q: A purchaser just paid $32,552.94 for a pickup truck. If 48% was the seller's markup, based on the…
A: Let C be cost and S be selling price. Then, Mark-up on selling price = (S - C) / S (S - C) / S =…
Q: At its best possible output level, a firm has total revenue of Rs. 7000 per day and total cost of…
A: The break-even point is the point at which a firm neither gains nor loses as the total revenue…
Q: Explicit cost is = $900 Implicit cost = $333 Find the economic profit???
A: Generally in the given question The value of explict cost = $900 The value of the implicit cost =…
Q: If a firm has total revenue of $100,000, the owner's labor in the firm is valu
A: Given that, A firm has total revenue = $100,000 Labour in the firm is valued = $20,000 Firm has…
Q: A firm's total cost is $12,000. Its variable cost is $5,500. What is the firm's fixed cost?
A: Correct : Fixed cost= $6500 Fixed cost is the part of total cost that does not depend on output and…
Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…
A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…
Q: What factors give rise to increasing returns to scale and decreasing returns to scale?
A: Increasing returns to scale means when all inputs are increased, the output is increased by more…
Q: or a decrease in output, average costs change by more in the long run than in the short run - True…
A: If there is a decrease in the production, short-run average total cost and long-run average total…
Q: The wage rate is $20 per hour and the cost of capital is $30 per hour. At the current output, the…
A: Under the theory of production, a cost minimizer firm produces at a point where the ‘MRTS(marginal…
Q: Match the production function and its name f(x1, x2) = min{x1, x2} | Choose. f(x1, x2) = ax1 + bæ2…
A: Production function shows relationship between inputs and output. It shows technology that uses…
Q: Refer to the above diagram. Diseconomies of scale?
A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…
Q: how do you know the total variable is 50 when finding the total fixed cost
A: TC = AC * Q ------------------- MC is a change in TC due to changing quantity by one unit. MCn =…
Q: if a firm hire workers at $3 week , labour is 1 and output is 6 what is the fixed cost, variable…
A: Wages (W) is given as $3.Labor (L) is 1.Output (Q) is 6 units.
Q: The short run is a time period that is A) long enough to change the size of the firm's plant. B) too…
A: Time period refers to the amount of time required for a factor to change. Time period influences the…
Q: At its best possible output level, a firm has total revenue of Rs. 7000 per day and total cost of…
A:
Q: If Maria spends Q hours on her evening run, her Marginal Benefit from the Qth hour, expressed in…
A: Now it's 2th hour instead of Q, so apply ot in the equation.
Q: Total Revenue function = 164x Total Cost function = 0,01x2+20x+300 x shows unit of production.…
A: Given the values: TR = 164x TC = 0.01x2+20x+300
Q: In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of…
A: Given that, 1,000 units are produced at a cost of $8,000 and 1,200 units are produced at a cost of…
Q: An increase in the firm's cost of a fixed input will in the long-run, cause the
A: An increase in the firm's cost of a fixed input will increase the fixed cost of firm. An increase in…
Q: A cost that changes with the level of production is called a(n)____cost a.variable b.average total…
A: Ans. The cost is the expenditures that are incurred during the production of the goods and services.…
Q: The short run is the time frame A) during which the quantities of all resources are fixed. B) during…
A: Production takes place in the short run while all planning is done in the long run.
Q: The marginal cost of producing the xth box of light bulbs is 4 + dollars per box. Determine how much…
A: Given: Marginal Cost (MC)of xth element : 4+x^2/1000 dollars per box Total Cost(TC) of xth element:…
Q: if the short run is 5 months, does it follow that the long run is longer than five months
A: The short-run is referred to the period in which a minimum of one input remains fixed. The…
Q: The long run is defined as A) the period of time when all resources are variable. B) any time after…
A: The long run is defined as the period of time when all resources are variable. Firm can change all…
Q: If the short run is 18 months does it follow that the long run is longer than 18 months?
A: In economics, the short-run is a time period during which the various production inputs (wages,…
Q: If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal…
A: Given Marginal Product of labor(MPL) = 1 ton of output. Marginal Product of capital l(MPK) = 7…
if the short run is six months, does it follow that the long run is longer than six months?
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- For a given commodity, the line haul cost is $13 per mile. For a trip of 200 milesand a shipment of 300 lbs., what is the cost per pound? If the shipment is increasedto 500 lbs., what is the saving in cost per pound?A short production run with frequent adjustments to machines is considered a(n). process of production.Please show the step by step solution
- how do you know the total variable is 50 when finding the total fixed cost?One fitness club charges a $10 promo sign-up fee and $15 per month. Another club charges a $25 promo signup fee and $10 per month. For what number of months is the cost of the clubs equal?Q4 (i) A business manager determines that t months after production begins on a new product, the number of units produced will be P thousand,where P(t) =6t2 + 5t (t + 1)2. What happens to production in the long run ? (ii) A ruptured pipe in a North Sea oil rig produces a circular oil slick that is y meters thick at a distance x meters from the rupture.Turbulence makes it difficult to directly measure the thickness of the slick at the source (where x = 0),but for x > 0,it is found that y =0.5(x2 + 3x) /x3 + x2 + 4x.Assuming the oil slick is continuously distributed,how thick would you expect it to be at the source?
- these are the drop down options Washes per hour dollarsIt costs a company $58 to produce 6 units of a product and $78 to produce 10 units. Assuming that the cost is linear, how much does it cost to produce 25 units?There is economies of scale if the average cost of production is lower for bigger scale of operations compared to the average cost of production for smaller scale of operations True False