ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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.
(ii) Make a table showing the revenue from selling 20,40,60,80 and 100 cupcakes.
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- The variable cost for the small business is shown below. What is the marginal cost and average cost at a volume of 14 units? Cost $8000 $6000 $4000 $2000 $200/unit Volume marginal cost: $200/unit, average cost: $476/unit O marginal cost: $200/unit, average cost: $300/unit O None of them marginal cost: $300/unit, average cost: $800/unit $300/unit 10 Total cost Variable cost Fixed cost 15arrow_forwardCalculate price per unit of table if total revenue is $6600 and the output sold is 30 unitsarrow_forwardCalculate total profit when total revenue is $9000 and the total cost is $8700arrow_forward
- 300 250 200 150 100 50 $ TC 30. The minimum Average Variable Cost is (a) $4 (b) $5 (c) $10 (d) $12 TVC TFC 0 Q 0 2 4 6 8 10 12 14 16 18 20 30 25 20 15 10 5 SA $ 0 0 2 4 6 8 10 12 14 16 18 20 MC AC AVC AFC Qarrow_forwardBased on this graph,Calculate the total cost for 500 pairs of shoes.arrow_forwardBags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.arrow_forward
- (1) The revenue for a product is R(x) = -0.004x? + 21x cost is C(x) = 0.02x + 38, for x units produced and sold. (a) Find the marginal profit for 2800 units. (b) Should output be increased or decreased to generate a higher profit? 6200 and thearrow_forwardGiven the cost information below if this firm increases its production and sales from 3 to 4 unites per day given a market price of $2500 per unito the profit margin: Quality produced/day Total Cost 0 $2k 1 $2500 2 $2800 3 $3300 4 $4100 5 $5300 6 $7k a.) will fall b.) will stay the same c.) will increasearrow_forwardWhat will be the Total revenue If the total cost is 200 and the profit is 400!arrow_forward
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